The entire general insurance business in India was nationalized by the Government of

India (GOI) through the General Insurance Business (Nationalization) Act (GINA) of 1972. [5] 55
Indian insurance companies and 52 other general insurance operations of other companies were
nationalized. 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.
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 notified as India's Re insurer, but its supervisory role over its
subsidiaries was ended. This was followed by the General Insurance Business (Nationalization)
Amendment Act of 2002.[6] 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.