IRDA nod for AllBank, other insurance plans
Insurance Regulatory and Development Authority (IRDA) has given in-principle clearance to the proposals of Allahabad Bank and Sompo, Japan to float a general insurance company and the IDBI-Fortis’ application for non-life companies.
By TNN |
Insurance Regulatory and Development Authority (IRDA) has given in-principle clearance to the proposals of Allahabad Bank and Sompo, Japan to float a general insurance company and the IDBI-Fortis’ application for non-life companies. The regulator has also accepted the application from Shriram and Sanlam of South Africa for a non-life insurance venture, reports Our Bureau in Mumbai.
According to industry sources, the regulator has also halved the mandatory training period for prospective insurance agents to 50 hours from 100 hours. The reduction in agents’ training hours will save the insurance industry several hundred crores of rupees.
In the next couple of years, over a million agents are expected to be recruited. At present, the cost of training and certifying an agent ranges from Rs 3,500 to Rs 4,500 for an insurance company.
The decisions were taken by the regulator at a board meeting in Hyderabad on Monday. Allahabad Bank has applied for a multi-partner joint venture where Sompo of Japan, Vijaya Bank, Indian Overseas Bank and Burmans of Dabur are partners.
Similarly, IDBI Bank has roped in private sector Federal Bank to be the third partner in the life insurance JV with Benelux-based Fortis group. IRDA’s licensing of new companies is a three-stage process.
The first stage R1 involves the preliminar y application. Following the clearance of the first stage, prospective entrants are expected to give detailed business plans. The regulator grants an in-principle approval based on the business plan.
After the in-principle approval, the promoters are expected to capitalise the insurance company. The final licence or R3 is the final operating licence following capitalisation.
Other JVs in the pipeline include Prudential of US with DLF, Bharti with Axa for non-life insurance, Bank of Baroda and Andhra Bank with UK insurer Legal & General, Canara Bank and Oriental Bank of Commerce with HSBC. Meanwhile, HSBC Group and Canara Bank have earmarked Harpal Karlcut as the CEO designate of their insurance JV.
According to industry sources, the regulator has also halved the mandatory training period for prospective insurance agents to 50 hours from 100 hours. The reduction in agents’ training hours will save the insurance industry several hundred crores of rupees.
In the next couple of years, over a million agents are expected to be recruited. At present, the cost of training and certifying an agent ranges from Rs 3,500 to Rs 4,500 for an insurance company.
The decisions were taken by the regulator at a board meeting in Hyderabad on Monday. Allahabad Bank has applied for a multi-partner joint venture where Sompo of Japan, Vijaya Bank, Indian Overseas Bank and Burmans of Dabur are partners.
Similarly, IDBI Bank has roped in private sector Federal Bank to be the third partner in the life insurance JV with Benelux-based Fortis group. IRDA’s licensing of new companies is a three-stage process.
The first stage R1 involves the preliminar y application. Following the clearance of the first stage, prospective entrants are expected to give detailed business plans. The regulator grants an in-principle approval based on the business plan.
After the in-principle approval, the promoters are expected to capitalise the insurance company. The final licence or R3 is the final operating licence following capitalisation.
Other JVs in the pipeline include Prudential of US with DLF, Bharti with Axa for non-life insurance, Bank of Baroda and Andhra Bank with UK insurer Legal & General, Canara Bank and Oriental Bank of Commerce with HSBC. Meanwhile, HSBC Group and Canara Bank have earmarked Harpal Karlcut as the CEO designate of their insurance JV.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
