GIC Role and Functions

General Insurance Corporation of India Limited abbreviated as GIC Re is an Indian public sector reinsurance company. It was incorporated on 22 November 1972 under Companies Act, 1956. GIC Re has its registered office and headquarters in Mumbai. It was the sole reinsurance company in the Indian insurance market until the insurance market was open to foreign reinsurance players by late 2016 including companies from Germany, Switzerland and France. GIC Re’s shares are listed on BSE Limited and National Stock Exchange of India Ltd.

The business of general insurance was nationalised through The General Insurance (Emergency) Provisions Ordinance promulgated on 13 May 1971 and thereby the business being carried on by 107 entities was consolidated and restructured into four companies namely The New India Assurance Company Limited, Bombay, United India Fire & General Insurance Company Limited, Madras, Oriental Fire & General Insurance Company Limited, Bombay and National Insurance Company Limited, Calcutta (New India Assurance Co. Ltd., United India Insurance Co. Ltd., The Oriental Insurance Co. Ltd., and National Insurance Company Co. Ltd. respectively).

The General Insurance Business (Nationalisation) Act, 1972 (GIBNA) that followed paved the way for the Government to take over ownership of these businesses. Accordingly, GIC was incorporated on 22 November 1972 as a private company under Companies Act, 1956[4] in Bombay and received its Certificate for Commencement of Business on 1 January 1973.

GIC’s stated role was to function as the holding company of the four companies, and superintend, control and carry on the business of General insurance on behalf of the Government of India.

Role:

Some of the schemes in operation of the benefit of poor are the personal account insurance, social security scheme, hut insurance scheme for poor families in rural areas and crop insurance scheme.

Besides the domestic market, the GIC is presently operating in 16 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies. The wholly owned subsidiary of GIC known as Indian International Insurance Private Limited, set up in 1988 in Singapore, has grown into a leading company in the Singapore market.

• Carrying on of any part of the general insurance, if it thinks it is desirable to do so.
• Aiding, assisting and advising the acquiring companies in the matter of setting up of standards of conduct and sound practice in general insurance business.
• Rendering efficient services to policy holders of general insurance.
• Advising the acquiring companies in the matter of controlling their expenses including the payment of commission and other expenses.
• Advising the acquiring companies in the matter of investing their fund.
• Issuing directives to the acquiring companies in relation to the conduct of general insurance business.
• Issuing directions and encouraging competition among the acquiring companies in order to render their services more efficiently.

General Insurance is also known as Non-Life Insurance in India. There are totally 16 General Insurance (Non-Life) Companies in India. These 16 General Insurance companies have been classified into two broad categories namely:

• PSUs (Public Sector Undertakings)
• Private Insurance Companies

PSUs (Public Sector Undertakings)

These insurance companies are wholly owned by the Government of India (subsidiaries of GIC). There are totally 4 PSUs in India namely:

• National Insurance Company Ltd-Head Office-Kolkata
• Oriental Insurance Company Ltd- Head Office- New Delhi
• The New India Assurance Company Ltd- Head Office-Mumbai
• United India Insurance Company Ltd- Head Office-Chennai