Insurance Penetration and Density UPSC Prelims Quiz

Statement 1 is incorrect: National Export Insurance Account (NEIA) is a fund set up in 2006 with an approved corpus of Rs. 2000 Crore. Out of which Rs. 546 Crore were funded by the Government of India. NEIA promotes project export from India, which are not covered by the ECGC (Export Credit Guarantee Council) because of its own underwriting capacity. It covers all Medium and long term exports and is not limited to Micro and Small Enterprises. Statement 2 is correct: National Exports Insurance Account promotes projects that are not provided credit cover by Export Credit Guarantee Corporation (ECGC). Statement 3 is incorrect: NEIA is maintained and operated by a Public Trust set up jointly by the Department of Commerce and ECGC. In this light, the National Exports Insurance Account Trust has been set up to provide credit cover and promote projects for exports.

GIC Re was a wholly-owned company of the Government of India until its initial public offer (IPO) in October 2017. After the IPO Government of India’s holding in GIC Re declined to 85.78%.

General Insurance business was nationalized with effect from 1st January 1973. 107 insurers were grouped into 4 companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd, and the United India Insurance Company Ltd.

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.

‘Agriculture Insurance Company Of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002