The General Insurance Business Nationalization Act was passed in 1972 to set up the general insurance business. It was the nationalization of 107 insurance companies into one main company called General Insurance Corporation of India and its four subsidiary companies with exclusive privilege for transacting general insurance business. This act has been amended and the exclusive privilege ceased on and from the commencement of the insurance regulatory and development authority act 1999. General Insurance Corporation has been working as a reinsurer in India. Their subsidiaries are working as a separate entity and plays significant role in the public sector of general insurance.
General Insurance Corporation of India (GIC)
General insurance industry in India was nationalised and a government company known as General Insurance Corporation of India was formed by the central government in November, 1972. General insurance companies have willingly catered to these increasing demands and have offered a plethora of insurance covers that almost cover anything under the sun.Objective of the GIC:
- To carry on the general insurance business other than life, such as accident, fire etc.
- To aid and achieve the subsidiaries to conduct the insurance business and
- To help the conduct of investment strategies of the subsidiaries in an efficient and productive manner.
- Carrying on of any part of the general insurance, if it thinks it is 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 services to policy holders 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 their fund.
- Issuing directives to the 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.
General Insurance is also known as Non-Life Insurance in India. There are totally 16 General Insurance (Non-Life) Companies in India. These 16 General Insurance companies have been classified into two broad categories namely:
- PSUs (Public Sector Undertakings)
- Private Insurance Companies
PSUs (Public Sector Undertakings)
These insurance companies are wholly owned by the Government of India(subsidiaries of GIC). There are totally 4 PSUs in India namely:
- National Insurance Company Ltd-Head Office-Kolkata
- Oriental Insurance Company Ltd- Head Office- New Delhi
- The New India Assurance Company Ltd- Head Office-Mumbai
- United India Insurance Company Ltd- Head Office-Chennai
Private Insurance Companies
There are mainly 12 private General Insurance companies in India namely
- Apollo DKV Health Insurance Ltd
- Bajaj Allianz General Insurance Co. Ltd
- Cholamandalam MS General Insurance Co. Ltd
- Future General Insurance Company Ltd
- HDFC Ergo General Insurance Co Ltd
- ICICI Lombard General Insurance Ltd
- Iffco Tokio General Insurance Pvt Ltd
- Reliance General Insurance Ltd
- Royal Sundaram General Insurance Co Ltd
- Star Health and Allied Insurance
- Tata AIG General Insurance Co Ltd
- Universal Sompo General Insurance Pvt Ltd