General Insurance Corporation, (abbreviated as GIC), is an Indian

public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, pu ...

reinsurance company, headquarters in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

. It was incorporated on 22 November 1972 under Companies Act, 1956. It was the sole

nationalised Nationalization (nationalisation in British English) is the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization contrasts with ...

reinsurance company in the Indian insurance market until the insurance market was open to foreign

reinsurance Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insu ...

players by late 2016 including companies from

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and

France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...

. GIC Re's shares are listed on BSE Limited and

National Stock Exchange of India National Stock Exchange of India Limited, also known as the National Stock Exchange (NSE), is an Indian stock exchange based in Mumbai. It is the List of stock exchanges, 5th largest stock exchange in the world by total market capitalization, ...

Ltd.

Making of GIC

The business of

general insurance General insurance or non-life insurance policy, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determine ...

was nationalised through The General Insurance (Emergency) Provisions Ordinance promulgated on 13 May 1971 and thereby the business being carried on by 107 entities was consolidated and restructured into four companies namely The New India Assurance Company Limited, Bombay, United India Fire & General Insurance Company Limited, Madras, Oriental Fire & General Insurance Company Limited, Bombay and National Insurance Company Limited, Calcutta (New India Assurance Co. Ltd., United India Insurance Co. Ltd., The Oriental Insurance Co. Ltd., and National Insurance Company Co. Ltd. respectively). The General Insurance Business (Nationalisation) Act, 1972 (GIBNA) that followed paved the way for the Government to take over ownership of these businesses. Accordingly, GIC was incorporated on 22 November 1972 as a private company under Companies Act, 1956 in Bombay and received its Certificate for Commencement of Business on 1 January 1973. GIC's stated role was to function as the holding company of the four companies, and superintend, control and carry on the business of General insurance on behalf of the Government of India. The first Chairman of GIC was A Rajagopalan, an Actuary and an officer of the Indian Administrative Service (IAS). M K Venkateshan and S K Desai were appointed the two Managing Directors of GIC. On 1 January 1973, GIC was notified as the reinsurer under Section 101 A of Insurance Act, 1938, making it the Indian reinsurer for receiving obligatory cessions, a role hitherto played by two companies called India Reinsurance Corporation Limited (India Re) and Indian Guarantee and General Insurance Company Limited (Indian Guarantee). GIC was reborn as a pure reinsurance company in November, 2000. It was re-notified as 'Indian reinsurer' under Insurance Act, 1938 and continued to receive obligatory cessions from direct insurers. It continued writing foreign inward reinsurance business purely on its own account from 1 April 2002. With effect from 21 March 2003, its four subsidiaries ( NICL, United India Insurance, Oriental Insurance and

New India Assurance The New India Assurance Co. Ltd. (''NIACL'') is an Indian Public Sector Undertakings in India, public sector insurance company owned by the Government of India and administered by the Ministry of Finance (India), Ministry of Finance. Headquart ...

) were delinked from GIC by an administrative order from the Ministry of Finance and became directly owned by the Government. Retaining its name, the company rebranded itself as "GIC Re" to denote its new identity.

Operations

All direct general insurance companies of India are required by law to cede a mandatory percentage of every policy value to GIC Re subject to some limitations and exceptions. This percentage of cession is decided by the IRDAI on an annual basis. In April 2020, GIC Re's Operations in Brazil got status upgrade from 'occasional reinsurer' to 'admitted reinsurer' by the Brazilian Superintendence of Private Insurance (SUSEP). It was published in the Brazilian Gazette on 14 April 2020.

Motto & Logo

On 26 August 1976, Chairman A Rajagopalan in GIC's Board Minutes signed and approved the motto of GIC Re, Ãpatkãle Rakshisyãmi. It a Sanskrit phrase that translates into, "I shall protect you in times of distress." In 1980s, GIC's logo was modified and the motto was incorporated in Devanagari Script.

Subsidiaries

*GIC Re South Africa Ltd *GIC Perestrakhovanie LLC, Russia *GIC Re, India, Corporate Member Ltd *GIC Housing Finance

References

External links

* {{Nifty 200 companies Financial services companies based in Mumbai General insurance companies of India Financial services companies established in 1972 Government-owned insurance companies of India Companies nationalised by the Government of India Indian brands 1972 establishments in Maharashtra Indian companies established in 1972 Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange