General Insurance Business (Nationalization) Act, 1972
The Act came into force on 1st January l973. It is an Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto. This act was passed with the objective of nationalization of general insurance business in India. The general insurance corporation was established under this act. This corporation was authorized solely to conduct the whole general business in India along with its four subsidiaries. The subsidiaries are Oriental insurance Corporation of India, National Insurance Corporation of India, New India Corporation of India and United India Insurance Corporation.
The General Insurance Business (Nationalization) Amendment Act, 2002
This Act is passed to further amend the General Insurance Business (Nationalization) Act, 1972. With the General Insurance Business (Nationalization) 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 was vested with the Government of India.