Max India, BUPA form JV for standalone health insurance

NEW DELHI: Diversified business group Max India on Friday formed a joint venture with the UK's leading health and care organisation, British United Provident Association (BUPA) to foray into standalone health insurance business.

"The company will have an initial paid up capital of Rs 100 crore with Max India holding 50 per cent stake, BUPA 26 per cent and 24 per cent with myself," Max India Chairman Analjit Singh told media.

Currently foreign firms are allowed to invest a maximum of 26 per cent in the insurance business.

Max India, which is already in life insurance business with the US-based New York Life Insurance, expects to operationalise its second insurance venture by September next year. He said the JV is expected to file for regulatory approval in the next two months.

Regulatory approval from IRDA and putting in place a new management and staff will atleast take a year, he added.
This would be the third company to enter into standalone health insurance business after Star Health Insurance and Apollo DKV.

Asked if Bupa would be allowed to hike stake in the JV, Singh said as and when the FDI cap in insurance sector is raised, then BUPA would have the option to increase their stake in the venture to 49 per cent. "In that case, I will be diluting my stake in favour of BUPA," Singh added.

He said the JV would look at providing not only in-patient covers, but also for out-patients as well as preventive care covers.