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Q147
(IAS/2006)
Economy › Industry, Infrastructure & Investment › Public sector enterprises
Answer Verified
Consider the following statements: I. Life Insurance Corporation of India is the oldest insurance company in India. II. National Insurance Company Limited was natinoalised in the year 1972 and made a subsidiary of General Insurance Corporation of India. III. Headquarters of United India Insurance Company Limited are located at Chennai. Which of the statements given above are correct?
Result
Your answer:
—
·
Correct:
C
Explanation
Statement I is incorrect. LIC was created by nationalisation in 1956, whereas the Indian life insurance sector had companies operating much earlier (the Indian Life Insurance Companies Act dates to 1912), so LIC is not the oldest insurance company in India [1]. Statement II is correct: the General Insurance Business (Nationalisation) Act led to creation of the General Insurance Corporation (GIC) in 1972 and the nationalisation of private insurers, which were made subsidiaries under GIC’s aegis [3]. Statement III is correct: United India Insurance Company Limited’s headquarters are in Chennai (Head Office, Chennai). Therefore, only II and III are correct.
Sources
- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > CHAPTER SUMMARY > p. 435
- [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > Seneral Insurance Corporation > p. 425
- [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.13 FDI in Insurance > p. 244
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