The Insurance Regulatory and Development Authority (Irda) has cleared Bajaj Allianz Life Insurance's proposal to enter the Indian market.
The insurance regulator has also asked Metlife India Insurance Company Pvt Ltd to file the second round of applications (R2).
Sources said the decision was taken at an Irda meeting on Saturday. "Bajaj Allianz has been given an in-principle clearance and will be granted a formal licence on completion of certain formalities," said an official.
The Bajaj-Allianz combine have already received Irda's sanction to enter the general insurance business.
Bajaj had initially applied solo to enter only the non-life business but later changed its plan and roped in Allianz as a partner for both the life as well as general insurance business.
Metlife India is a consortium comprising US insurance major Metlife, Jammu & Kashmir Bank, M Pallonji group and a group of small investors.
M Pallonji group will be the largest stakeholder in the venture with 31 per cent stake, while Metlife will hold 26 per cent and J&K Bank 25 per cent of the shares. The remaining 18 per cent will be held by four strategic investors.
The company will have an initial equity of Rs 110 crore and its business plan envisages an investment of around Rs 450 crore over the next five years.
Bajaj Allianz Life is the fourteenth company to get Irda's approval. Apart from Metlife, CGU Dabur, which recently filed its application with the regulator to enter the life insurance business.
