IRDA seeks status report from Tata AIG

NEW DELHI: Insurance regulator IRDA today asked insurance provider Tata AIG to clarify if it was solvent in the wake of reports that the venture's American partner AIG was in deep financial trouble.

The venture was conspicuously silent and no comments could be obtained till late this evening, with the company hedging the queries throughout the day by saying it would come out with a statement soon.

"Having regard to the developments reported in USA, the IRDA has asked for the reports of the companies in the matter," the regulator said in a statement.

AIG holds 26 per cent and Tatas 74 per cent in the JV business that offers both life as well as general insurance.
The IRDA statement said that the recent developments in the New York Financial Markets have caused concern in the financial markets in India.



Certain newspapers have reported that AIG, which is a leading insurance group of the USA, has sought financial support from the Fed Reserve and have voiced concerns about the impact the developments in AIG would have on the general and life insurance companies in India, it said.

IRDA also noted that the accounts of these two companies as on March 31, 2008 indicate that both companies have satisfactory solvency margins which are adequate to meet their liabilities.

Both the companies are registered under the Indian Companies Act and are bound by the provisions of the Insurance Act and other Regulations, it said. AIG Group, operating in the country for more than five year, has 12,000 employees.