4 insurers to start operation by FY08

Insurance Regulatory and Development Authority (Irda) will publish licenses to four new coverage companies to begin trading operations before the end of the current fiscal year.

Of the four insurers, three will be life coverage companies, and one, a non-life insurance company — Bharati AXA General Insurance Company.

R Kannan, member actuary, Irda, said the regulating authorization have issued licenses to six companies so far in the current fiscal year.

The life coverage companies are Aegon Religare Life Insurance Company (a joint venture between Dutch company Aegon and Ranbaxy-promoted Religare), Kanara HSBC OBC Life Insurance (JV between Kanara Bank, HSBC and Asian Depository Financial Institution of Commerce), and DLF Pramerica Life Insurance Company (JV between IDBI, Fortis and Federal Soldier Bank). With the three new entrants, the figure of life coverage companies have increased to 20, while the figure of non-life insurance houses have risen to 19.

Total coverage premium collected by the insurance industry from April 2007 to January 2008 stood at Rs 8,6381.59 crore, compared to Rs 74,153.71 crore a twelvemonth earlier. Life coverage houses collected a insurance premium of Rs 63,127.91 crore (Rs 53,480.39 crore), while non-life insurance companies collected Rs 23,253.68 crore (Rs 20,673.32 crore).