General Insurance
Corporation of India
General Insurance Corporation of India (GIC
Re) is
the sole reinsurance company
in the Indian insurance market with over three decades of experience.
General Insurance
Corporation of India
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General Insurance Corporation of India
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Industry
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Founded
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November 22, 1972
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Headquarters
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Area served
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Services
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Website
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GIC has its registered office and
headquarters in Mumbai.
History
The entire general insurance business in India was
nationalised by the Government of India (GOI)
through the General Insurance Business (Nationalisation) Act (GIBNA) of 1972.
55 Indian insurance companies and 52 other general insurance operations of
other companies were nationalized through the act.[2]
The General Insurance Corporation of
India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was
incorporated on 22 November 1972 under the Companies Act, 1956 as a private
company limited by shares. GIC was formed to control and operate the business
of general insurance in India.
The GOI transferred all the assets and
operations of the nationalized general insurance companies to GIC and other
public-sector insurance companies. After a process of mergers and
consolidation, GIC was re-organized with four fully owned subsidiary companies: National
Insurance Company Limited, New India Assurance Company
Limited, Oriental Insurance Company
Limited and United
India Insurance Company Limited.
GIC and its subsidiaries had a monopoly on
the general insurance business in India until the landmark Insurance
Regulatory and Development Authority Act (IRDA Act) of 1999 came into
effect on 19 April 2000. This act also amended the GIBNA Act and Insurance Act
of 1938. The act along with the amendments ended the monopoly of GIC and its
subsidiaries and liberalized the insurance business in India.
In November 2000, GIC was renotified as
India's Reinsurer, but its supervisory role over its subsidiaries was ended.
This was followed by the General Insurance Business (Nationalisation)
Amendment Act of 2002. Coming into effect from 21 March 2003, this
amendment ended GIC's role as a holding company of its subsidiaries. The
ownership of the subsidiaries was transferred to the Government of India, which
in turn divested its stake in the companies through listings on Indian stock
exchanges.
As a result of these reforms, GIC became the
sole Re-Insurer in India, and is now called GIC Re. Indian
insurance companies are required by law to cede 10% of every policy value to
GIC Re, subject to some limitations and exceptions. GIC Re has diversified its
operations and is now emerging as an important Re-Insurer in SAARC countries, Southeast Asia, Middle East and Africa. GIC Re has also expanded its international
operations through branches in London and Moscow.
GIC Re has a rating of A- (Excellent) from A. M. Best for its financial strength.
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