Tata-AIG file application for life, non-life insurance

NEW DELHI, OCT. 7. The Tata group and American International Group (AIG) combine has filed applications with the Insurance Regulatory and Development Authority (IRDA) for both life and non-life insurance ventures.

The two companies - Tata AOG General Insurance Company Ltd and Tata AIG Life Insurance Company Ltd - would start with an initial capital of Rs. 125 crores each, Tata Sons chairman, Mr. Ratan Tata, told reporters here.

``The Tata group will hold 74 per cent while AIG will have 26 per cent equity in the ventures," he said and added that both companies had filed their applications with IRDA on Friday. These companies will offer traditional and tailor-made insurance products and services to meet the changing needs of the Indian economy, vice-chairman of AIG and former U.S. Ambassador to India, Mr. Frank Wisner, said. He said the life insurance side would include savings products, along with pension and medical benefits.

The general products will include directors and officers' liability, accident and health, corporate and professional liability, export credit insurance, along with traditional products such as household, fire and automobiles, Mr. Wisner added.

The group would invest a major portion of the Rs. 250 crores in the two ventures through Tata Sons, Mr. Tata said. AIG, with a turnover of $40 billion, and the $10 billion turnover Tata group signed an MoU in 1994 and a protocol of understanding in 1995 for the insurance ventures.

- PTI

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Section  : Business
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