Insurance is a contract between two parties where one party (the insured) undertakes a risk and the other party (the insurer) promises to compensate the insured if a specified uncertain event occurs. There are two parties to an insurance contract - the agent or insured, and the insurer who takes out the policy. General insurance provides coverage for property, health, accidents, legal liabilities, and more. It is offered by general insurance companies to protect individuals, businesses, and their assets and legal liabilities. The General Insurance Corporation of India (GIC) was formed as a public sector company to control and operate general insurance in India.

1. Insurance
WHAT IS INSURANCE ?
INSURANCE IS NOTHING BUT CONTRACT
BEETWEEN TWO PERSON IN WHICH ONE
UNDERTAKES RISKS AND ANOTHER PROMISES
TO COMPENSATE IT IF ANY UNCERTAIN EVENT
HAPPENS.

2. TWO PARTIES
THERE ARE TWO PARTIES IN INSURANCE CONTRACT.
ONE IS AGENT (INSURED) AND ANOTHER IS INSURER(PERSON WHO TAKES
POLICY.
This Photo by Unknown Author is licensed under CC BY-NC-SA

3. HERE WE’LL BE GOING TO UN DERSTAND THE GENERAL INSURANCE
CORPORATION
• INTRODUCTION
• AT PRESENT, INSURANCE REQUIREMENTS HAVE EXPANDED TO MAINTAIN PACE WITH THE INCREASING RISKS. TODAY WE FIND A WIDE VARIETY
OF RISK COVERAGE AVAILABLE ON EVERY WALK OF LIFE VIZ., HEALTH INSURANCE, CROP AND CATTLE INSURANCE, PROPERTY AND VEHICLE
INSURANCE, TRAVEL INSURANCE, THEFT, FIRE OR ACCIDENTAL INSURANCE AND EVEN A WEDDING INSURANCE ETC. WITH THE PROGRESSIVE
ECONOMIC GROWTH AND DEVELOPMENT ACROSS THE WORLD THERE IS A GROWING TREND TO CATER TO THE NEEDS OF SECURING ONE’S LIFE
AND BELONGINGS.
• GENERAL INSURANCE COMPANIES HAVE WILLINGLY FULFILLED THESE INCREASING NEEDS AND HAVE OFFERED A VARIETY OF INSURANCE
COVERS THAT INCLUDES EVERYTHING POSSESSED BY US. ALL THE INSURANCE OTHER THAN ‘LIFE INSURANCE’ COMES UNDER THE CATEGORY
OF GENERAL INSURANCE. GENERAL INSURANCE PROVIDES INSURANCE COVERAGE TO:
• PROPERTY AGAINST FIRE, THEFT, BURGLARY, TERRORISM, NATURAL CALAMITIES ETC.;
• PERSONS AGAINST ACCIDENT, HEALTH AND LIABILITY INSURANCE AS WELL AS LEGAL LIABILITIES ETC.;
• PROFESSIONALS AGAINST CREDIT INSURANCE ETC.;
• PLANT AND MACHINERIES AGAINST BREAKDOWN OR LOSS OR DAMAGE DUE TO FIRE, THEFT, BURGLARY, TERRORISM, NATURAL CALAMITIES OR
DURING TRANSIT;
• MARINE INSURANCE COVERS AGAINST ANY LOSS OF GOODS WHILE IN TRANSPORTATION BY SEA WATERWAYS, AIR, RAILWAYS, AND ROAD AND
COVER THE HULL OF SHIPS.
• MOTOR VEHICLES AGAINST DAMAGE OR ACCIDENTS AND THEFT.
• CROPS AND CATTLE/LIVE STOCK AGAINST ANY KIND OF LOSS.

4. DEFINATION OF GIC :
• General Insurance Corporation of India (GIC Re) is the sole reinsurance company in the
Indian insurance market with over three decades of experience. GIC has its registered
office and headquarters in Mumbai.
• The General Insurance Corporation of India (GIC) was formed in pursuance of
Section 9(1) of General Insurance Business (Nationalization) Act 1972. It was incorporated
on November 22, 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 Government of India (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 Limited.

5. ROLE, SCOPE AND IMPORTANCE OF GENERAL INSURANCE
Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property
against fire, burglary etc., personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities.
There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies
have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products
that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there
are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further,
insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.
A non-life insurance contract is different from a life insurance contract. A life insurance contract is a long term contract, while general
insurance contract is a one-year renewable contract. The risk namely ‘death’ is certain in life insurance. The only uncertainty is as to when
it will take place, whereas in general insurance, the insured event may or may not take place. It is difficult to determine the economic
value of life, whereas the financial value of any asset to be insured under a general insurance policy can be determined. Because of these
peculiar features, a non life insurance contract is different from a life insurance contract.
Section 2(6B) of the Insurance Act 1938, defines general insurance business. According to this, general insurance business means fire,
marine, or miscellaneous insurance whether carried separately or in combination. General Insurance Corporation of India (GIC) was set
up with exclusive privilege for transacting General Insurance business. After the passage of IRDA Act 1999, GIC has been delinked from its
subsidiaries and has been assigned the role of Indian reinsurer.
General Insurance covers are necessary for every family. It is important to protect one’s property, which one might have acquired from
one’s hard earned income. A loss or damage to one’s property can leave one shattered. Losses created by catastrophes such as the
tsunami, earthquakes, Cyclones etc. have left many homeless and penniless. Such losses can be devastating but insurance could help
mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial
relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by
obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on
insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the
right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industries that
are self-financed should ensure that they are protected by insurance.

6. NATURE OF GIC
A contract of insurance is an agreement whereby one party, called the insurer,
undertakes, in return for an agreed consideration, called the premium, to pay the other
party, namely the insured, a sum of money or its equivalent in kind, upon the
occurrence of a specified event resulting in a loss to him. The policy is a document
which is an evidence of the contract of insurance. As per Mr. Anson, a contract is an
agreement enforceable at law made between two or more persons by which rights are
acquired by one more persons to certain acts or forbearance on the part of other or
others. The Indian Contract Act, 1872, sets forth the basic requirements of a Contract.
As per Section 10 of the Act: “All agreements are contracts if they are made by the free
consent of parties competent to contract, for a lawful consideration and with a lawful
object, and are not hereby expressly declared to be void…..”. An Insurance policy is
also a contract entered into between two parties, viz., the Insurance Company and the
Policyholder and fulfills the requirements enshrined in the Indian Contract Act.

7. General Insurance Corporation with its
subsidiaries
General Insurance was nationalized by the passing of the General Insurance Business
(Nationalized)Act, 1972, under which all the share of Indian Insurance Companies on the
appointed day (January 1st, 1973) vested first in the Central Government and after that in the
General InsuranceCorporation of India. On NationalizationGeneral InsuranceCorporation
was formed with four subsidiaries i.e.,
• New India Assurance Co. Ltd. – Head Office – Mumbai
• United India InsuranceCo. Ltd. – Head Office – Chennai
• Oriental InsuranceCo. Ltd. – Head Office - New Delhi
• National InsuranceCo. Ltd. – Head Office – Kolkata
• All general business is transacted through the above four said subsidiaries General
InsuranceCorporation is the controlling body.Thus, all the Insurance business is now under
the ownership and control of Central Government

8. Functions of General Insurance
Corporation
The Functions of the Corporation shall include:
– The carrying on of any part of the general insurance business, if it thinks it desirable to do so.
– Aiding, assisting and advising the acquiring companies in the matter of setting up of standards of
conduct and sound practice in general insurance business.
– Rendering efficient service to holders of policies of general insurance.
– Advising the acquiring companies in the matter of controlling their expenses including the payment
of commission and other expenses.
– Advising the acquiring companies in the matter of investing of their funds.
– Issuing directions to acquiring companies in relation to the conduct of general insurance business.
– Issuing directions and encouraging competition among the acquiring companies in order to render
their services more efficiently.

9. THANK YOU