GIC: General Insurance Corporation.

Setup of GIC :
It was constituted in 1973 under the GIC act 1972

It resulted into nationalization of 68 Indian insurance company and 45 non- Indian insurance company The paid up capital of GIC is fully subscribed by the Government of India. The 4 subsidiaries of GIC conduct marine, fire, miscellaneous insurance business while GIC direct business is only in the form of aviation insurance automobile insurance, ocean insurance, theft loss etc GIC is the only Indian reinsurer

GIC and its subsidiaries.

Corporation was formed as a holding company, with four subsidiary operating Companies. They are: New India Assurance Company Ltd United India Insurance Company Ltd National Insurance Company Ltd Oriental Insurance Company Ltd

Mission of GIC

To provide need-based and low cost general insurance covers to the rural population keeping in mind their low premium paying capacity. To administer a crop insurance scheme for the benefit of farmers.
To develop and introduce covers with social security benefits.

To develop a marketing network throughout the country including areas with low premium potential; promote balanced regional development irrespective of cost considerations and make the benefits of insurance available to the masses.

Network of GIC.

GIC and its subsidiaries function through a network of 4167 offices spread across the length and breadth of the country. GIC and its subsidiaries have a total workforce of around 85,000. It is one of the largest Financial Institutions in the country. The other ventures initiated by GIC are GIC Mutual Fund and GIC Housing Finance.

Recent changes in the services of GIC.

It has undertaken rural insurance scheme and agricultural insurance scheme such as livestock, poultery,sericulture,pesciculture,hoticulture,etc. And even GIC has launched schemes like personal accident policy, health insurance etc

Some schemes of GIC.

Fire insurance, Marine insurance, Motor insurance, Personal accident insurance.

Fire insurance
Following are the features of fire insurance scheme of GIC: Policy rates Discount in standard premium Loading in premium Design of scheme

Marine insurance
Following risk are covered up to 7 days of arrival at destination of goods

Fire or explosion.
Vessel being stranded and sunk. Derailment of land carrier or rail wagon. Collision with external object. Lighting. Breakage of bridges. Overturning of vehicle.

Motor insurance
In India motor vehicle act was passed in the year 1939 to make 3rd party Insurance compulsory. The act of 1939has been replaced by motor vehicles act 1988 Risk or loss covered are:-

Fire Explosion Self ignition Lighting Burglary Riots Strike Natural calamity

Personal accident insurance

Personal insurance has two categories: Normal risk Heavy risk

compensation
Percentage of compensation is usually 100% in all the cases Loss of two limbs & two eyes is also 100%