Sun Life keen on hiking stake in Indian joint venture

Sun Life Financial Inc, is open to increasing its stake in Birla Sun Life Insurance (BSLI) and has made the necessary allowances to increase its stake in the Indian joint venture, if the government is able to amend the Insurance Act.

Addressing a press conference at the launch of two new health-related insurance initiatives, Joe Dahl, vice-president (underwriting), Sun Life Financial Inc, said: "We welcome the move and have made the necessary allowances. The matter will be discussed when the law is passed." Sun Life Financial Inc at present has a 26 per cent and Aditya Birla Group has a 74 per cent stake in BSLI.

BSLI, which at present has eight offices in south India, plans to open another four during the current financial year.

"We would be opening one more office in Hyderabad as part of the expansion plan," K S Gopalakrishnan, vice-president and appointed actuary, Birla Sun Life Insurance, said.

The new health-related initiatives that BSLI launched yesterday in Hyderabad are, the Critical Illnesses (CI) Plus Rider and the Woman First Plan. Speaking about the products, Gopalakrishnan said: "The CI Plus Rider covers 17 major illnesses and can be added to any of the other plans offered by BSLI."

The illnesses that are covered under the scheme cover both common illnesses and which require hospitalisation or surgery. The scheme is targeted at the age groups between 18 and 50 and covers up to a maximum amount of Rs 10 lakh.

According to Gopalakrishnan, the Woman First Plan is the first scheme exclusively for women that any insurance company offers in the country.

"The scheme offers high growth potential along with a safety net in the form of a three per cent guarantee on the premiums of policy fees and charges," Gopalakrishnan said.

The plan apart from offering the regular benefits of a life insurance cover also covers women specific illnesses.

BSLI for the financial year ended March 31, 2004 recorded a 253 per cent growth in premium income at Rs 462.5 crore.

BSLI has a 22 per cent market share among the private insurance players in the country and a three per cent market share among all the insurance players, which includes the four public sector insurance companies.