General insurance is a non-life insurance which includes automobile and home-owners policies. In other words, insurances other than life insurance fall under the category of General Insurance.
General Insurance activities in India were started as early as from the days of the British East India Company. The General Insurance Business (Nationalization) Act came into effect on and from 20th September, 1972 with an objective to provide for the acquisition and transfer of shares of Indian insurance companies to effectively serve the needs of the general insurance business and for the betterment of the society.
The primary function of the General Insurance Corporation of India, or GIC is to help and advice the acquiring companies in the matter of establishing norms and standards for conduct and activity in general insurance business.
The General Insurance Corporation is a company registered under the Companies Act and is considered to be a Government Company wherein “not less than 51% of the paid-up share capital is held by the Central Government or by any State Government or partly by the Central Government and partly by one or more State Governments….”
