National Insurance Corporation was established in 1976 with an initial paid up capital of Rs 5 million for the sole purpose of insuring public properties. This included properties owned by the government, autonomous bodies and organizations in which the Government of Pakistan had controlling financial interest.

The National Insurance Corporation conducted its business on commercial principles similar to private insurance companies transacting general insurance business. The Corporation made considerable efforts to develop economical premium rates for various types of insurance covers generally needed by the public sector organizations. A major objective of the Corporation was to reduce the outflow of foreign exchange in the form of reinsurance premium. The Corporation was successful in curtailing dependence on reinsurance from foreign companies from approximately 80% in 1976 to less than 10% in 1998 (except in case of Aviation Hull and Marine Hull).