(1) For Co-insurance business, GIF has entered into MOU with Regional Office of the Insurance companies working in Gujarat, MOU covers conditions regarding business sharing, function of leading company, claim settlement, subsequent reimbursement of claims settled, settlement of disputed claims etc. By & large until now no problem has arisen so far.

Government company , Board, Corporation etc. wherein Govt. Financial Interest is involved is free to choose the Insurance Companies. Normally, insurance companies working with insured since long are continued for renewal purpose, GIF does not interfere in this matter and normally performance of the insurance company is found satisfactory including private insurance company.

(2) In case of Direct business, GIF underwrites Direct business on 100% basis for limited insurance policies like a Fire, House Building Fire Policy for Govt. Employees having availed Govt. Housing Loan (HBA Fire Insurance Policy issued for 100% loan period) Burglary, Cash in Transit, Electronic Equipment, LPG Gas dealers (Govt.Civil Supply Dept.), Civil Aviation business of Govt. owned Aircraft.

The claims arising out of above policies are processed and settled by GIF itself.

(3) Welfare Policy (Group Personal Accident Policy):- Government of Gujarat has framed and introduced welfare schemes for different categories of employees and sectors of population .
Welfare Policies are :
(A) Registered Farmers
(B) Landless Labourers
(C) Police Personnel
(D) College Students
(E) Primary & Secondary Students
(F) Safai Kamdar

The scheme’s name itself suggests the beneficiaries covered under the scheme. Above welfare scheme covers accidental death (excluding natural death and suicide) and permanent total disablement due to accident.

The unique feature of these policies is that, beneficiaries do not have to contribute towards premium, because entire premium amount is being paid by the State Govt. through relevant department formulating and operating the scheme.

(4) Risk Management: Main Principle of Insurance is sharing of risk and therefore as a part of risk management GIF re-insures its co-insurance and direct business depending upon the risk involved in terms of hazards and high valued risk.The net retention of the risk varies from case to case.

Though GIF is a part of Govt. of Gujarat, the working of GIF was regulated under Insurance Act 1938 as amended from time to time,& as of today under IRDA Act 2000. The Insurance Regulatory and Development Authority of India,(IRDA) monitors GIF’s functions and activities through inspection, audit and scrutiny of quarterly returns.

Relevant statistical information regarding various schemes, working of GIF and financial results are put up herewith for study.