ROLE OF GENERAL INSURANCE

CORPORATION IN THE
DEVELOPMENT OF THE INDIAN
ECONOMY
 Introduction
GIC is a public sector enterprise & is also largest non-
life insurance company and one of the largest
financial institutions in India.

Four subsidiaries
1. National Insurance Company Limited
2. New India Assurance Company Limited
3. Oriental Insurance Company Limited
4. United India Insurance Company Limited
 History

The entire general insurance business in India

was nationalised by General Insurance
Business (Nationalisation) Act, 1972 (GIBNA).

Introduction of Insurance Regulatory and

Development Authority Act, 1999 (IRDAA)
 What is reinsurance?
Insurance that is purchased by an insurance
company (insurer) from a reinsurer as a means of risk
management.

Two methods of Reinsurance:

1. Facultative Reinsurance
2. Treaty Reinsurance
a) Quota Share Treaty Reinsurance
b) Excess of loss Treaty Reinsurance
 Business operations
Domestic business

International business
 IRDA REGULATION ON INVESTMENT
20% - GOVT SECURITIES
30% - STATE GOVT
05% - HOUSING SECTOR
10% - INFRASTRUCTURE
 ROLES OF GIC
1. GIC has filled the need by promoting the creation of
need-based insurance products that people of lower
income in rural areas could purchase.
2. One of the main role GIC has played is to set broad
policies to influence and manage the general
insurance industry.
National Insurance Company Limited
New India Assurance Company Limited
Oriental Insurance Company Limited
United India Insurance Company Limited
 ROLES
3. It has provided reinsurance to the country's
major insurance companies, thereby
underwriting their risk and losses.

4. Passing of IRDA & de-regulating the general

insurance industry. This has greatly increased
competition within the general insurance
industry market in the Indian economy.
 ROLES
5. India's recent improved standard of living of
its people has increased the demand for
insurance products. GIC has lifted the ban that
nationalized the general insurance industry.
 ROLES
6. GIC Housing Finance Limited was established
as 'GIC Grih Vitta Limited' on December 12,
1989.the types of loans are:
Fixed Scheme
Floating Scheme
Flexi-fixed Sceme
Step up/Step down Sceme
 ROLES
7. In December 1987, GIC, along with its
subsidiaries set up a subsidiary in Singapore,
known as India International Pte. Ltd.
 CONTRIBUTION
Spread of financial services.
Policies sold in(2004-05)-55lacs,
Sum Assured:46000crores.

Generation of employment.
31ST MAR,2004 15.59lacs agents.
31st MAR,2005 2lacs agents.
 Contribution cont.
Generates Long term funds for infrastructure

Insurance is the only sector which garners

long term savings.
 Case study-Life Reinsurance in terror
times
The unprecedented attacks on26th nov,2008, one of
the most violent on Indian soil gave a jolt to the
reputation of Mumbai being safe and secure.
GIC Re and Hannover Life Re had entered into an
agreement in June2008 to jointly market and develop
Indian life reinsurance business.
Life can be so bizarre and unpredictable!
The days after the attacks have proved beyond doubt
that GIC Re and Hannover Life Re partnership is here to
stay and provide competitive life reinsurance solutions
 Market Overview
Has one of the lowest penetration rates for insurance in asia.

Has good growth potential.

Insurers operating in now de-regulated environment will be

able to expand product lines to cater to the demand for more
customized and sophisticated risk solutions.
 WEBLIOGRAPHY
http://www.gicofindia.com/
http://www.indiahousing.com/insurance-
companies/gic-general-insurance-corporation-
india.html
http://en.wikipedia.org/wiki/General_Insuran
ce_Corporation_of_India
http://www.flyhighonline.com/flyhigh/flyhigh
/contentlinks/drmurthy1.php
 Nikhil Jain 04
Pranay Jain 05
Danish menon 09
Hardik salot 26
Manisha Saxena 29
Saloni Shah 34