The General Insurance Corporation of India (GIC)

The General Insurance Corporation of India Ltd. (GIC) is a government-owned insurance company under the Ministry of Finance. It was incorporated on 22nd November 1972 under the Companies Act, 1956.

Background

• The General Insurance Business (Nationalization) Act of 1972 (GIBNA) nationalized the entire general insurance business in India.
• The GIC was formed in pursuance of Section 9 (1) of GIBNA.
• Through nationalization, the Indian government took over the shares of 55 Indian insurance companies and the undertakings of 52 insurers carrying on the general insurance business.

Formation of GIC

• The GIC was incorporated on 22nd November 1972 under the Companies Act of 1956 as a private company limited by shares.
• Its objective was to superintend, control, and carry on the business of general insurance across the country.

GIC’s Role

• The GIC was formed to:
  • Superintend
  • Control
  • Carry on the business of general insurance across the country.

Importance of GIC

The General Insurance Corporation of India topic is important not only for exam preparation but also for practical knowledge. Candidates appearing for related competitive exams should check the below sections for more insights on the GIC.

Mission, Vision, & Core Values

GIC Vision

To be a leading global reinsurance and risk solution provider.

GIC Mission

To achieve the vision by:

• Building long-term mutually beneficial relationships with business partners
• Practicing fair business ethics and values
• Applying state-of-the-art technology, processes including enterprise risk management, and innovative solutions
• Developing and retaining a highly motivated professional team of employees
• Enhancing profitability and financial strength befitting the global position

GIC Core Values

• Trust and mutual respect
• Professional excellence
• Integrity and transparency
• Commitment
• Responsive service

Objectives of the GIC

Following are the objectives of the General Insurance Corporation of India (GIC):

• To carry on the general insurance business, other than life, such as fire, accident, theft, etc.
• To help and promote the subsidiaries to conduct the business of insurance, and
• To help them conduct investment strategies of the GIC subsidiaries in a productive and efficient manner

Roles and Functions of the GIC

The roles and functions of the General Insurance Corporation of India (GIC) are as follows:

• To carry on any part of the general insurance, if it thinks it is worthwhile to do so.
• To assist, advise, and aid the acquiring companies in the matter of setting up the standards of conduct and fair practice in the business of general insurance.
• To render efficient services to the general insurance policyholders.
• To issue directives to the acquiring companies in relation to the conduct of the business of general insurance.
• To advise the acquiring companies in the matters concerning investing their funds.
• To issue directions to the acquiring companies and encourage competition among them in order to render efficient services.

Classification of the Indian General Insurance Industry

General Insurance in India

General Insurance, also known as non-life insurance, is a crucial sector in India’s insurance industry. There are a total of 16 general insurance companies operating in the country, broadly categorized into two types:

1. PSUs (Public Sector Undertakings)

These insurance companies are subsidiaries of the General Insurance Corporation of India (GIC) and are wholly owned by the Government of India. The PSUs are further subdivided into:

• The New India Assurance Company Ltd. (Bombay)
• Oriental Insurance Company Ltd. (New Delhi)
• United India Insurance Company Ltd. (Chennai)
• National Insurance Company Ltd. (Kolkata)

2. Private Insurance Companies

There are 12 private general insurance companies operating in India:

• Apollo DKV Health Insurance Ltd
• Bajaj Allianz General Insurance Co. Ltd.
• Cholamandalam MS General Insurance Co. Ltd
• Future General Insurance Company Ltd
• HDFC Ergo General Insurance Co Ltd
• ICICI Lombard General Insurance Ltd
• Iffco Tokio General Insurance Pvt Ltd
• Reliance General Insurance Ltd
• Royal Sundaram General Insurance Co Ltd
• Star Health and Allied Insurance
• Tata AIG General Insurance Co Ltd
• Universal Sompo General Insurance Pvt Ltd