Insurance Companies In India
Public Sector Insurance Companies in India
Public Sector Insurance Companies in India play a vital role in providing insurance services to the citizens of the country. There are a total of 57 public sector insurance companies in India, out of which 24 are life insurance companies and 34 are non-life insurance companies.
Life Insurance Companies
Among the various life insurance providers, the Life Insurance Corporation of India (LIC) is the sole government-owned insurance company. LIC was established in 1956 by merging 243 insurance companies. It is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959, and Insurance Regulatory and Development Authority of India (IRDAI) Act 1999.
Non-Life Insurance Companies
In the non-life insurance domain, there are six public sector insurance companies. These companies are:
- General Insurance Corporation of India (GIC)
- New India Assurance Company Limited
- United India Insurance Company Limited
- Oriental Insurance Company Limited
- National Insurance Company Limited
- The New India Assurance Company Limited
General Insurance Corporation of India (GIC Re)
The General Insurance Corporation of India (GIC Re) is the sole national reinsurer in India. It was established in 1972 to provide reinsurance services to Indian insurance companies.
Stakeholders in the Indian Insurance Market
The stakeholders in the Indian insurance market include:
- Agents (both corporate and individuals)
- Brokers
- Third party administrators for health insurance claims
- Surveyors
Public Sector Insurance Companies in India play a vital role in providing insurance services to the citizens of the country. They offer a wide range of insurance products and services to meet the needs of different customers.
General Insurance Corporation of India (GIC)
The General Insurance Corporation of India (GIC) was established in 1972 as a holding company for four insurance companies:
- The New India Assurance Co. Ltd.
- The Oriental Insurance Co. Ltd.
- United India Insurance Co. Ltd.
- National Insurance Co. Ltd.
In November 2000, GIC was designated as the India Reinsurer, and its supervisory role over its subsidiaries ended. From 21st March 2003, GIC’s role as a holding company also ended, and the Government of India took over ownership of the four subsidiaries.
GIC is headquartered in Mumbai and has liaison offices in Delhi, Kolkata, and Chennai. It also has branches in London, Dubai, and Kuala Lumpur and a representative office in Moscow.
GIC has two foreign subsidiaries: GIC Re South Africa and GIC Re India Corporate Member Ltd. in the UK.
As of 31st March 2016, GIC had 558 employees. Its authorized capital is INR 1000 crore, and its paid-up capital is INR 430 crore.
New India Assurance Company Limited (NIAC)
The New India Assurance Company Limited (NIAC) was founded by Sir Dorabji Tata on 23rd July 1919 and nationalized in 1973 with the merger of Indian companies. The company has 2329 offices and 18,783 employees as of 31st March 2016.
NIAC provides insurance services to customers with over 170 products catering to almost all segments of the general insurance business.
The company has an authorized capital of INR 300 crore and INR 200 crore as paid-up equity capital.
Insurance Companies in India
United India Insurance Company Limited (UIIC)
- Established in 1938.
- Merged with 12 Indian Insurance Companies, 4 Cooperative Insurance Societies, and Indian operations of 5 foreign insurers.
- Has 2080 offices and 16,345 employees as of 31st March 2016.
- Provides insurance services to all segments of the general insurance business.
- Authorized capital of INR 200 crore and paid-up equity capital of INR 150 crore.
Oriental Insurance Company Limited (OIC)
- Established in 1947.
- All shares held by the General Insurance Corporation of India were transferred to the government of India in 2003.
- Has 1924 offices in the country and a strong employee base as of 31st March 2016.
- Provides insurance services to almost all segments of the general insurance business.
- Both authorized capital and paid-up equity capital are INR 200 crore.
National Insurance Company Limited (NIC)
- Established in 1906.
- Nationalized in 1972.
- Has a vast network of over 3000 offices and a workforce of over 35,000 employees.
- Offers a wide range of insurance products and services, including motor, health, home, travel, and more.
- Authorized capital of INR 500 crore and paid-up equity capital of INR 250 crore.
Public Sector Insurance Companies in India
National Insurance Company Limited (NIC)
- Incorporated in 1906.
- Merged with 21 foreign and 11 Indian companies to form the National Insurance Company Ltd. after nationalization.
- Has 1998 offices across the country with 15,079 employees as of March 31, 2016.
- Provides general insurance products and services.
- Authorized capital of INR 200 crore and paid-up equity capital of INR 100 crore.
Agriculture Insurance Company of India Limited (AIC)
- Incorporated on December 20, 2002, under the Companies Act, 1956.
- Exclusively looks after the insurance needs of individuals engaged in agriculture and allied activities in India.
- General Insurance Corporation of India, NABARD, and four public sector general insurance companies contributed to the share capital of the AIC.
- Authorized share capital of INR 1500 crore with INR 200 crore being the initial paid-up equity share capital.
- Commenced business operations on April 1, 2003, after receiving approval from the IRDA.
- Has 274 employees as of March 31, 2016.
- Headquartered in New Delhi with 17 regional offices across state capitals and 3 one-man offices at the district levels.
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