The History of General Insurance Corporation of India.

1. Know about the General Insurance Corporation of India
and its history
It is ideal for all candidates appearing for the GIC officer’s exams to know a little about GIC and its
history. This information can definitely be used to impress your interviewer post the exam selection
process. So let’s take a look at the formation of the GIC.
The Nationalisation of General Insurance in 1972 brought all the insurance companies under the
Government of India. This was achieved through the General Insurance Business Nationalisation Act –
GIBNA. The Indian Government became the owner of the shares of fifty five insurance companies and
undertakings of fifty two insurers throughout India. Then the formation of the General Insurance
Corporation of India – GIC took place.
The GIC was formed in accordance to the Section 9(1) of the GIBNA. GIC was incorporated on 22 nd
November, 1972 as a private limited company, under the Companies Act. The aim behind the creation of
GIC was to superintend, control and carry on the general insurance business.
The Government of India transferred the shares of the Insurance companies in its possession, to the GIC.
It also transferred the undertakings to the general insurance companies. There were mergers among the
various general insurance firms and four companies remained as the subsidiary of the General Insurance
Corporation. These companies were- The Oriental Insurance Company Limited, United India Insurance
Company Limited, National Insurance Company Limited and New India Assurance Company Limited.
Another landmark change in the GIC came in the form of the Insurance Regulatory and Development
Authority Act of 1999. It came into force on 19th April 2000. It made an amendment to the Insurance Act
of 1938 and GIBNA, which removed the ‘exclusive privilege’ of the GIC and its subsidiary companies
from carrying forward the general insurance business in India.
The GIC in November, 2000 was re-notified as the India re-insurer. And the administration also voted to
end the supervisory role of the GIC over the Subsidiaries. With the General Insurance Business
Nationalisation Amendment Act – 2002 coming into force on March 21 2003 the GIC was no longer the
holding company of the subsidiaries. The ownership of the subsidiaries now lay with the Indian
Government.
The individuals appearing for the GIC officer’s exam can benefit from knowing the history of the GIC. We
at Jaro Education provide you with the best coaching methods to see you succeed in the GIC Officer’s
exam.