Saturday, May 12, 2018

Marine insurance market in india

Companies providing marine insurance in India

Prior to nationalisation of general insurance business effective January 1973, the marine insurance market in India was composed of private companies, both Indian and foreign. Foreign companies operated either as branches of their parent company abroad or through agents.

Besides the private companies, the Government controlled companies:

The Oriental Fire and General Insurance Co. and
Life Insurance Corporation of India

Also transacted general insurance business

In all,there were 107 companies operating in India. These were amalgamated and reconstituted into four companies, as follows:
 a) The National Insurance Co. Ltd. with its H O. in Calcutta. 
 b) The New India Assurance Co. Ltd vrith its H.0. in Bombay.
 c) The Oriental Fire and General Insurance Co. Ltd. with its     H.O. in New Delhi,
 d) The United India Fire and General Insurance Co. Ltd. with its H. O. in Madras. 

The General Insurance Corporation of India (GIC) was incorporated in November, 1972 as a holding company and the above four companies were designated as its subsidiaries from 1st January, 1973

Along with these companies certain state insurance funds were also constituted e.g

1) Maharashtra Insurance Fund.
2) Kerala Insurance Fund etc

They were also allowed to carry on general insurance business including marine insurance business.

Thus, these companies and Funds were having exclusive privilege of carrying on general insurance business in India.

In the year 1999, The Insurance Regulatory and Development Authority Act was passed, under which the exclusive privilege of sector companies and funds was withdrawn and the sector was opened up to private Indian insurance companies, allowing for a maximum shareholding of 26% for a foreign entity. 

By the 2002 amendment to the General Insurance Business Nationalisation Act, 1972, GIC was made the only reinsurance company of India and its rights to carry on direct general insurance business were withdrawn. Similarly the public sector insurance companies no more remained subsidiaries of GIC, their holdings were transferred to the Government of India.

As on date, there are 17 general insurance companies In India transacting marine insurance. There are no companies doing exclusive marine insurance business.