Three more insurers on horizon

The Insurance Regulatory Development Authority of India (Irda) has cleared the R1 applications for three proposed insurance companies, including DKV Apollo Insurance company, a standalone health insurance company being set up by as a joint venture between Apollo Hospitals Enterprise (26 per cent) and Deutsche Krankenversicherung AG (DKV-74 per cent), a Munich Re Group's health insurance firm.

The remaining two are Future Generali Life Insurance Company and Future Generali General Insurance Company (joint ventures between Pantaloon Retail India (74 per cent) and Italy's Generali Group (26 per cent).

C S Rao, chairman, Irda said, "The R2 applications have been filed by the three companies and are under consideration."

Meanwhile, Irda has turned down the R1 application of Principal PNB Life Insurance, a joint venture between Principal Financial Group (26 per cent), Punjab National Bank (30 per cent), Vijaya Bank (12 per cent) and UK Paints (32 per cent), and asked the stakeholders to provide certain clarifications.

Rex Auyeung, Principal International, senior vice president and CEO, Asia said, "The R1 application is in the processing stage, and details cannot be provided for public information."

The Irda is, meanwhile, considering the R1 application of Japanese major Sompo Japan Insurance Asia (26 per cent), Allahabad Bank (30 per cent), Indian Overseas Bank (19 per cent), Karnataka Bank (15 per cent) and Dabur (10 per cent) to set up a non-life insurance company.

The Irda by clearing an R1 application gives in-principle approval to a proposed insurance venture. The application contains the details of promoters of the proposed insurance company, capital structure, directors and key persons, proposed external auditors, financial projections, regions in which business will be transacted, and the manner in which rural and social obligations will be fulfilled.

The R2 application contains details of geographical spread, distribution, sales promotions, underwriting, investments, IT, customer services, retention limits and reinsurance training, internal controls, expenses of administration, premium rates for products along with rebates.

The R3 application contains the classes of business which may be transacted, a confirmation from the stakeholders on the company's capitalisation.

An insurance company gets a license to operate from the regulator once it gets R1-R3 approvals from the Irda.

So far, the Irda has approved seven tie-ups for setting up life insurance companies, five tie-ups for non-life insurance companies and two standalone health insurance companies.