General Insurance Corporation (GIC) of India is the sole reinsurance company in the Indian insurance market with over four decades of experience.
The entire general insurance business in India was nationalized by General Insurance Business (Nationalization) Act, 1972 (GIBNA). 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 for the purpose of superintending, controlling and carrying on the business of general insurance. As soon as GIC was formed, GOI transferred all the shares it held of the general insurance companies to GIC. Simultaneously, the nationalized undertakings were transferred to Indian insurance companies.
After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC
- National Insurance Company Limited
- The New India Assurance Company Limited
- The Oriental Insurance Company Limited
- United India Insurance Company Limited.
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.
The Chairman and Managing Director of GIC Re is Mr. Ashok K Roy. The Headquarters of GIC Re is at Mumbai.
As of 2012 GIC Re ranked 15th largest Reinsurer and 5th largest Aviation Reinsurer in the world (S&P Ratings).
Source GIC Website and Wiki