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General Insurance Corporation of India

General Insurance Corporation of India (GIC Re)
Type Public-sector undertaking
Industry Insurance
Founded November 22, 1972 (1972-11-22)
Headquarters Mumbai, India
Area served Worldwide
Key people A K Roy, Chairman & MD[1]
Services Reinsurance
Owners Government of India
Website .com.gicofindiawww

GIC of India (GIC Re) is the sole reinsurance company in the Indian insurance market with over four decades of experience.

GIC Re 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.

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 5% of every policy value to GIC Re w.e.f. 1st April 2013, 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, Europe and America. GIC Re has also expanded its international operations through branches in London, Moscow, Dubai and Kuala Lumpur and is further planning to establish offices in key regions.

As of 2012 GIC Re ranked 15th largest Reinsurer and 5th largest Aviation Reinsurer in the world (S&P Ratings). GIC Re has a rating of A- (Excellent) from A. M. Best for its financial strength. As of 2014 GIC Re has been assigned National Scale ‘AAA’ Reliability Rating And Global Scale ‘iA-’ Credit Rating by Russian National Rating Agency (NRA).

References

  1. ^ "Board of Directors". General Insurance Corporation of India. Retrieved 2011-10-21. 
  2. ^ "History in brief". General Insurance Corporation of India. Retrieved 2011-10-21. 

External links

  • General Insurance Corporation of India Ltd. Official Website
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