GIC Role and Functions
- General Insurance Corporation of India Limited abbreviated as GIC Re is an Indian A public sector reinsurance firm. It was formed on November 22, 1972 under the Companies Act of 1956. GIC Re has its registered office and headquarters in Mumbai. It was the only reinsurance firm in the Indian insurance industry until late 2016, when it was opened up to international reinsurance players such as those from Germany, Switzerland, and France. GIC Re’s shares are listed on both the BSE Limited and the 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 thus 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, Calcu
- The General Insurance Business (Nationalisation) Act of 1972 (GIBNA) that followed allowed the government to take over control of these companies. As a result, GIC was registered as a private company under the Companies Act, 1956[4] in Bombay on November 22, 1972, and got its Certificate for Commencement of Business on January 1, 1973.
- GIC’s declared duty was to serve as the holding company for the four firms, supervising, controlling, and carrying out the business of general insurance on behalf of the Government of India.
- Role:
- Some of the systems in existence to aid the poor include personal account insurance, social security, hut insurance for impoverished households in rural regions, and crop insurance.
- Aside from the local market, the GIC now operates in 16 countries directly via branches or agents, and 14 countries through subsidiary and affiliate firms. Indian International Insurance Private Limited, GIC’s fully owned subsidiary in Singapore, was founded in 1988 and has developed to become a market leader in Singapore.
- Carrying on any component of the general insurance if it believes it is beneficial to do so.
- Aiding, helping, and advising acquiring businesses on the establishment of standards of behavior and excellent practice in the general insurance sector.
- Provide effective services to general insurance policyholders.
- Advising acquiring firms on expenditure containment, including commission payments and other expenses.
- Advise acquiring corporations on how to invest their funds.
- Issuing directions to the acquiring firms about general insurance industry.
- Issuing directives and fostering competition among acquiring organizations in order to provide their services more effectively.
- General insurance, commonly known as Non-Life Insurance in India. There are 16 general insurance (non-life) companies in India. These 16 General Insurance businesses were divided into two basic groups, namely:
- Public Sector Undertakings (PSUs).
- Private Insurance Companies
- Public Sector Undertakings (PSUs).
- The Government of India owns 100% of these insurance businesses (GIC subsidiaries). India has four public sector undertakings (PSUs), namely:
- National Insurance Company Ltd-Head Office, Kolkata
- Oriental Insurance Company Ltd – Head Office in New Delhi.
- The New India Assurance Company Ltd – Head Office in Mumbai
- United India Insurance Company Ltd- Head Office- Chennai