History in Brief
Content
History in Brief
The entire general insurance business in India was nationalised by General Insurance Business (Nationalisation) Act, 1972 (GIBNA). The Government of India (GOI), through Nationalisation took over the shares of 55 Indian insurance companies and the undertakings of 52 insurers carrying on general insurance business. General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC was formed for the purpose of superintending, superintendin g, controlling and carrying on the business of general insurance. As soon as GIC was formed, GOI transferred t ransferred all the shares it held of the general insurance companies to GIC. Simultaneous Simultaneously, ly, the nationalised undertakings were transferred to Indian insurance companies. After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC (1) National Insurance Company Limited, (2) The New India Assurance Company Limited, (3) The Oriental Insurance Company Limited, and (4) United India Insurance Company Limited. The next landmark happened on 19th April 2000, when the Insurance Regulatory and Development Authority Act, 1999 (IRDAA) came into force. This act also introduced amendment to GIBNA and the Insurance Act, 1938. An amendment to GIBNA removed the exclusive privilege of GIC and i ts subsidiaries carrying on general insurance in India. In November 2000, GIC is renotified as the Indian Reinsurer and through administrative instruction, its supervisory role over subsidiaries was ended. With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force from March 21, 2003 GIC ceased to be a holding company of its subsidiaries. Their ownership were vested with Government of India.
Balance Sheet 2011-12
Balance Sheet as at 31st March 2012 (Rs.'000) Sources of funds
2011-12
2010-11
Current Year
Previous Year
43,00,000
43,00,000
7,26,05,078
9,39,02,190
Fair Value change Account
17,07,27,874
18,81,77,072
Total
24,76,32,952
28,63,79,262
Share Capital Reserve and Surplus Deferred Tax Liability
Application of funds
Investments
36,94,60,864
36,69,24,795
49,91,930
59,53,935
4,94,018
4,48,945
50,500
15,160
Cash&Bank Balance
6,91,43,742
4,75,66,041
Advances & Ot Assets
9,31,68,102
7,63,76,758
Sub total (A)
16,23,11,844
12,39,42,799
Current Liablities
21,34,47,278
14,76,64,245
7,62,28,926
6,32,42,127
28,96,76,204
21,09,06,372
-12,73,64,360
-8,69,63,573
Loans Fixed Assets Deferred Tax Asset Current Assets:
Provisions Sub total (B) Net Current Assest (C )=(A-B)
Total Contingent Liabilties IC Housing Finance Ltd. - Balance Sheet Finance using
dustry
E Code 11676 E de
ICHSGFIN
-
siness oup
int lding
Sector
Value/M
E Ratio
P (Rs.) IN No
ce t
E289B01019
0.00/1 1.26
arket Cap
4.79 Cr
ou can view latest 5 years Balance Sheet of GIC Housing Finance Ltd. ar 12
ar 11
ar 10
ar 09
ar 08
URCES OF FUNDS ners Fund uity Share Capital
53.88 53.85 53.85 53.85 53.85
are Application Money
0.00
0.00
0.00
0.00
0.00
eference Share Capital
0.00
0.00
0.00
0.00
0.00
serves & Surplus an Funds
43.32 412.48 333.13 294.29 262.47
24,76,32,952
28,63,79,262
1,12,85,470
1,09,47,692
cured Loans
30.96 686.44 226.91 157.98 961.49
secured Loans
35.89 400.00 400.00 320.00 150.00
tal
64.05 552.77 013.89 826.12 427.82
ES OF FUNDS ed Assets oss Block
12.19
8.84
8.04
7.09
6.41
ss : Revaluation Reserve
0.00
0.00
0.00
0.00
0.00
ss : Accumulated Depreciation
5.73
5.52
4.94
4.13
3.67
t Block
6.46
3.32
3.10
2.96
2.74
pital Work-in-progress
0.00
0.00
0.00
0.00
0.00
10.35 17.61 49.13
1.14
1.14
vestments t Current Assets rrent Assets, Loans & Advances
66.53 589.57 000.39 918.78 504.72
ss : Current Liabilities & Provisions
19.29 57.73 38.72 96.75 80.78
tal Net Current Assets
47.24 531.84 961.66 822.03 423.94
iscellaneous expenses not written
64.05 552.77 013.89 826.12 427.82
tal te : ok Value of Unquoted Investments
0.00
0.00
0.00
0.00
0.00
10.35 17.61 49.13
1.14
1.14
arket Value of Quoted Investments
0.00
0.00
0.00
0.00
0.00
ntingent liabilities
2.70
1.70
0.34
0.28
0.39
mber of Equity shares outstanding (in Lacs)
38.51 538.51 538.51 538.51 538.51
The General Insurance Act (GIA) of 1972 nationalized the general insurance industry of India in order for government to better serve the country's economic needs and those of its citizens. GIA's passage established the General Insurance Corporation (GIC) to control the general insurance industry, which includes all insurance companies that sell products other than life insurance, which is a separate industry. The GIA combined 107 of the country's insurance companies, which were later separated into four subsidiary companies and located in four different cities in India. Read more: General Insurance Corporation Act | eHow.com http://www.ehow.com/about_6303507_general-insurance-corporationact.html#ixzz2KZ21dfQR Structure of GIC
GIC's main role is to set broad policies to influence and manage the general insurance industry. It functions as a holding company, not as a subsidiary. This means that GIC doesn't sell insurance products, but maintains control over other companies that do sell insurance products through the four subsidiary companies it formed. The only products the GIC sells are insurance policies to the aviation industry, which was a part of government's share of the general insurance industry prior to the passage of GIA. The four
Agricultural Insurance also offers opportunities. There is huge scope for savings-linked insurance and pension business. Conclusion
The public sector insurance companies are definitely facing challenges as private insurance companies are competing powerfully in corporate segments. With the opening up of the sector, the Indian insurance Industry is becoming more reliant on technology. New products will be developed and intermediaries will play a more meaningful role. And the Indian insurance sector, by strengthening technological improvements, can bridge the gaps in services offered, bring in prudential norms and ultimately help the customer in getting world class products and services. In addition, the
Public Sector companies can venture into untapped rural potential for which they have a very vast network of officers and trained manpower. Insurance needs to be packaged in such a form that it appears acceptable to the rural customer. In the near future, when we see more innovations in agriculture in the form of corporatization, or a more professional approach from farmers, insurance will definitely be one option that the Rural Indian looks at … it is his future.
The entire general insurance business in India was nationalised by General Insurance Business (Nationalisation) Act, 1972 (GIBNA). The Government of India (GOI), through Nationalisation took over the shares of 55 Indian insurance companies and the undertakings of 52 insurers carrying on general insurance business. General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC was formed for the purpose of superintending, superintendin g, controlling and carrying on the business of general insurance. As soon as GIC was formed, GOI transferred t ransferred all the shares it held of the general insurance companies to GIC. Simultaneous Simultaneously, ly, the nationalised undertakings were transferred to Indian insurance companies. After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC (1) National Insurance Company Limited, (2) The New India Assurance Company Limited, (3) The Oriental Insurance Company Limited, and (4) United India Insurance Company Limited. The next landmark happened on 19th April 2000, when the Insurance Regulatory and Development Authority Act, 1999 (IRDAA) came into force. This act also introduced amendment to GIBNA and the Insurance Act, 1938. An amendment to GIBNA removed the exclusive privilege of GIC and i ts subsidiaries carrying on general insurance in India. In November 2000, GIC is renotified as the Indian Reinsurer and through administrative instruction, its supervisory role over subsidiaries was ended. With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force from March 21, 2003 GIC ceased to be a holding company of its subsidiaries. Their ownership were vested with Government of India.
Balance Sheet 2011-12
Balance Sheet as at 31st March 2012 (Rs.'000) Sources of funds
2011-12
2010-11
Current Year
Previous Year
43,00,000
43,00,000
7,26,05,078
9,39,02,190
Fair Value change Account
17,07,27,874
18,81,77,072
Total
24,76,32,952
28,63,79,262
Share Capital Reserve and Surplus Deferred Tax Liability
Application of funds
Investments
36,94,60,864
36,69,24,795
49,91,930
59,53,935
4,94,018
4,48,945
50,500
15,160
Cash&Bank Balance
6,91,43,742
4,75,66,041
Advances & Ot Assets
9,31,68,102
7,63,76,758
Sub total (A)
16,23,11,844
12,39,42,799
Current Liablities
21,34,47,278
14,76,64,245
7,62,28,926
6,32,42,127
28,96,76,204
21,09,06,372
-12,73,64,360
-8,69,63,573
Loans Fixed Assets Deferred Tax Asset Current Assets:
Provisions Sub total (B) Net Current Assest (C )=(A-B)
Total Contingent Liabilties IC Housing Finance Ltd. - Balance Sheet Finance using
dustry
E Code 11676 E de
ICHSGFIN
-
siness oup
int lding
Sector
Value/M
E Ratio
P (Rs.) IN No
ce t
E289B01019
0.00/1 1.26
arket Cap
4.79 Cr
ou can view latest 5 years Balance Sheet of GIC Housing Finance Ltd. ar 12
ar 11
ar 10
ar 09
ar 08
URCES OF FUNDS ners Fund uity Share Capital
53.88 53.85 53.85 53.85 53.85
are Application Money
0.00
0.00
0.00
0.00
0.00
eference Share Capital
0.00
0.00
0.00
0.00
0.00
serves & Surplus an Funds
43.32 412.48 333.13 294.29 262.47
24,76,32,952
28,63,79,262
1,12,85,470
1,09,47,692
cured Loans
30.96 686.44 226.91 157.98 961.49
secured Loans
35.89 400.00 400.00 320.00 150.00
tal
64.05 552.77 013.89 826.12 427.82
ES OF FUNDS ed Assets oss Block
12.19
8.84
8.04
7.09
6.41
ss : Revaluation Reserve
0.00
0.00
0.00
0.00
0.00
ss : Accumulated Depreciation
5.73
5.52
4.94
4.13
3.67
t Block
6.46
3.32
3.10
2.96
2.74
pital Work-in-progress
0.00
0.00
0.00
0.00
0.00
10.35 17.61 49.13
1.14
1.14
vestments t Current Assets rrent Assets, Loans & Advances
66.53 589.57 000.39 918.78 504.72
ss : Current Liabilities & Provisions
19.29 57.73 38.72 96.75 80.78
tal Net Current Assets
47.24 531.84 961.66 822.03 423.94
iscellaneous expenses not written
64.05 552.77 013.89 826.12 427.82
tal te : ok Value of Unquoted Investments
0.00
0.00
0.00
0.00
0.00
10.35 17.61 49.13
1.14
1.14
arket Value of Quoted Investments
0.00
0.00
0.00
0.00
0.00
ntingent liabilities
2.70
1.70
0.34
0.28
0.39
mber of Equity shares outstanding (in Lacs)
38.51 538.51 538.51 538.51 538.51
The General Insurance Act (GIA) of 1972 nationalized the general insurance industry of India in order for government to better serve the country's economic needs and those of its citizens. GIA's passage established the General Insurance Corporation (GIC) to control the general insurance industry, which includes all insurance companies that sell products other than life insurance, which is a separate industry. The GIA combined 107 of the country's insurance companies, which were later separated into four subsidiary companies and located in four different cities in India. Read more: General Insurance Corporation Act | eHow.com http://www.ehow.com/about_6303507_general-insurance-corporationact.html#ixzz2KZ21dfQR Structure of GIC
GIC's main role is to set broad policies to influence and manage the general insurance industry. It functions as a holding company, not as a subsidiary. This means that GIC doesn't sell insurance products, but maintains control over other companies that do sell insurance products through the four subsidiary companies it formed. The only products the GIC sells are insurance policies to the aviation industry, which was a part of government's share of the general insurance industry prior to the passage of GIA. The four
Agricultural Insurance also offers opportunities. There is huge scope for savings-linked insurance and pension business. Conclusion
The public sector insurance companies are definitely facing challenges as private insurance companies are competing powerfully in corporate segments. With the opening up of the sector, the Indian insurance Industry is becoming more reliant on technology. New products will be developed and intermediaries will play a more meaningful role. And the Indian insurance sector, by strengthening technological improvements, can bridge the gaps in services offered, bring in prudential norms and ultimately help the customer in getting world class products and services. In addition, the
Public Sector companies can venture into untapped rural potential for which they have a very vast network of officers and trained manpower. Insurance needs to be packaged in such a form that it appears acceptable to the rural customer. In the near future, when we see more innovations in agriculture in the form of corporatization, or a more professional approach from farmers, insurance will definitely be one option that the Rural Indian looks at … it is his future.
