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Obligatory Reinsurance Cession with the National Reinsurer, GIC Re of India

General Insurance Corporation of India (GIC) was the holding Company for four Public Sector Insurers namely: The New India Assurance Company Limited, National Insurance Company Limited, The Oriental Insurance Company Limited, and United India Insurance Company Limited.

However, with the enactment of IRDAI Act 1999 and opening of the sector to private insurers, four subsidiary companies were separated from GIC and become an independent company. GIC was subsequently designated as National Reinsurer with Compulsory Obligatory Cession for all classes of business albeit with cap on monetary limits / percentage restrictions for very few selected classes.

Regulator introduced Compulsory Obligatory Cession of 20% in year 2000 and this was reduced gradually over the period. The same currently stands reduced to 4% for the financial year 2023-24.

Copy of IRDAI Regulations on Obligatory Cession