General Insurance Corporation of India (Activities and Performance)!

The General Insurance Corporation (GIC) was formed by Central

Government in 1972. With effect from January 1, 1973 the erstwhile 107
Indian and foreign insurance companies who were operating in the country
prior to nationalisation, were grouped into four operating companies,
namely,
(a) National Insurance Company Limited.
(b) New India Assurance Company Limited.
(c) Oriental Insurance Company Limited.
(d) United Insurance Company Limited.
With head offices at Kolkata, Mumbai, New Delhi and Chennai, respectively
GIC which was the holding company of the four public sector general
insurance companies has since been delinked from the later and has been
approved as the Indian Reinsurer since 3 November 2000. All the four
entities are Government companies registered under Companies Act.
The General Insurance business has grown in spread and volume after
nationalisation. The tour companies have 2, 699 branch offices, 1,360
divisional offices and 92 regional offices spread all-over the country.

Activities of GIC:
Some of the schemes in operation of the benefit of poor are the personal
account insurance, social security scheme, hut insurance scheme for poor
families in rural areas and crop insurance scheme.
Besides the domestic market, the GIC is presently operating in 16 countries
directly through branches or agencies and in 14 countries through

subsidiary and associate companies. The wholly owned subsidiary of GIC

known as Indian International Insurance Private Limited, set up in 1988 in
Singapore, has grown into a leading company in the Singapore market.

Performance of GIC:
The gross premium income of the nationalised general insurance industry
in India during 1999- 2000 was Rs. 9,523 crore as against Rs. 8,759 crore
during 1998-99, representing a growth of 8,72 percent over the premium
income of 1998-99.
The net premium income of the nationalised general insurance industry in
India during the year 1999-2000 was Rs. 8,649 crore as against Rs. 7,732
crore in 1998-99, representing a growth of 11.86 percent over the net
premium income of 1998-99.
The gross profit of the industry during 1999-2000 was Rs. 1,152 crore as
against Rs. 1,467 crore in 1998-99. Similarly, the net profit of the industry
during the year 1999-2000 was Rs. 1,077 crore as against Rs. 874 crore in
1998-99.
According to the latest report the net profit of the Industry during 2001-02
amounted to Rs. 12,229 crore, as against Rs. 10,772 crore during 2000-01
representing a growth of 13.52 percent over the premium income of last

Products and Services

General insurance may be described as a way to reduce or eliminate risk of loss to property. The risks
covered by general insurance included fire, the perils of the sea, death and accidents and burglary.
Any risk arising from these may be insured against at a premium that commensurates with the risk
involved. Thus, insurance is collective bearing of risk. GIC offered a variety of general insurance
products

Domestic
As a sole reinsurer in the domestic reinsurance market, GIC Re provides reinsurance to the direct general
insurance companies in the Indian market. GIC Re receives statutory cession of 5 % on each and every policy
subject to certain limits.

General Insurance Corporation Of India in Churchgate, Mumbai

It is perhaps the sole re-insurer in the country. General Insurance Corporation Of India is one of the
most prolific names in the insurance industry.
The Re-Insurers
General insurance Corporation is owned and managed by the Government of India and has been a
success story in the insurance industry for over three decades. As the company is the sole provider of
reinsurance services in the country, the company is also called as GIC Re. The company has also
started providing solutions to many countries around the world on Re-insurance. The service of the
company has been rated as excellent by leading insurance regulatory bodies around the globe. The
company also has its reach in the international shores with offices in London and Moscow. The head
office of the company is located at Churchgate in Mumbai.

Products and Services Provided by General Insurance Corporation Of India

The company provides a wide range of products and services that helps in securing millions of
individuals around the world. The schemes of the company are well designed keeping in mind the
ever changing needs of the consumers. The company provides Domestic Re-insurance services to
various direct general companies in the country. The company is allotted 10% cessation of all the
insurance companies in India making it the prime body for insurance in the country. They also provide
International Reinsurance service that is an added advantage for the international insurance
companies to cut off their risks. General Insurance Corporation Of India even provide investment and
fun management solutions. The finance of the company is well scrutinized under the Insurance Act
and IRDA which is the head of all insurance activities in the country. They also maintain IRDA
regulations on investment which advises the insurer to keep a certain amount of investment for safety.
Other Services
The service of General Insurance Company is backed by a good and effective staff and management
who help in completing the operations of the company. The company owns four subsidiary companies
under its sleeves namely National Insurance Company Limited, New India Assurance, Oriental
Insurance and United India Assurance. These four companies are leading names in the insurance
industry and have served millions of insurers in the country and around the world. The financial
strength of the company is also well maintained and stealthy to let you stay risk free. The company
has also framed various policies for the insurance companies to let them run with ease.
General Insurance Corporation of India provides the best safety to insurance companies for all their
risks.