In which year was General Insurance Corporation of India incorporated as a company?
1972
Understanding the General Insurance Corporation of India (GIC)
The question asks about the year when the General Insurance Corporation of India (GIC) was incorporated as a company. GIC is a significant entity in the Indian insurance sector.
Before delving into the specific year of incorporation, it's helpful to understand the context of general insurance in India during that period.
Nationalization of General Insurance in India
In India, the general insurance business was nationalized by the Government of India. This process involved taking over the management of existing general insurance companies and restructuring the sector.
Key steps in the nationalization process included:
- The General Insurance (Emergency Provisions) Ordinance, 1971 was promulgated to take over the management of existing general insurance companies.
- Following this, the General Insurance Business (Nationalisation) Act, 1972 was enacted. This Act provided the framework for nationalizing the general insurance business in India.
Incorporation of General Insurance Corporation of India
As part of the nationalization process mandated by the Act, the General Insurance Corporation of India (GIC) was incorporated.
GIC was incorporated as a company under the Companies Act, 1956.
The specific year of incorporation for the General Insurance Corporation of India as a company was 1972.
GIC was formed with the objective of superintending, controlling, and carrying on the business of general insurance. It initially functioned as a holding company for the four subsidiary general insurance companies created after nationalization.
Analyzing the Options
Let's look at the given options:
- 1988
- 1972
- 1965
- 1981
Based on the history of the nationalization of general insurance in India and the subsequent formation of GIC, the correct year of incorporation for the General Insurance Corporation of India as a company is 1972.
Conclusion
The General Insurance Corporation of India was incorporated as a company in 1972, following the nationalization of the general insurance business in India.
Revision Table: General Insurance Corporation of India
Here is a quick summary of key points related to GIC's formation:
| Event | Year | Significance |
|---|---|---|
| General Insurance (Emergency Provisions) Ordinance | 1971 | Took over management of general insurance companies |
| General Insurance Business (Nationalisation) Act | 1972 | Legal framework for nationalization |
| Incorporation of GIC | 1972 | Formation of the holding company (GIC) |
| Formation of four subsidiary companies | 1973 | Operating companies under GIC (Oriental, New India, United India, National) |
Additional Information: Role of GIC Over Time
After its incorporation in 1972, GIC played a significant role in the Indian insurance market. Initially, it acted as a holding company for its four subsidiaries: The Oriental Insurance Company Ltd., The New India Assurance Company Ltd., United India Insurance Company Ltd., and National Insurance Company Ltd.
Over time, GIC's role evolved. Following the liberalization of the insurance sector in India in the early 2000s, GIC transitioned from being a holding company to becoming the sole national reinsurer of India. It ceased to be a holding company for the four public sector general insurance companies.
Today, GIC Re (as it is often called) is a leading global reinsurer, providing reinsurance support to direct insurance companies in India and abroad.
Understanding the year of incorporation is crucial for knowing the history of GIC and the structure of the Indian general insurance market post-nationalization.
Important Questions from Insurance
Given below are two statements
Statement I: In the case of Life Insurance, the insurable interest must be present in the person insured at the time when the event happened.
Statement II: In the case of Fire Insurance, the insurable interest must be present in the object insured at the time when the policy is taken and the event has happened.
In light of the above statements, choose the correct answer from the options given below
Which of the following sentences explains the principle of utmost good faith in insurance?
‘Average clause’ in insurance is applicable for which one of the following cases?
Who among the following relatives of a deceased insured person is not “dependent” under the Employees’ State Insurance Act, 1948?
When did Life Insurance Corporation come into existence ?
