4 insurers to start operation by FY08

Insurance Regulatory and Development Authority (Irda) will issue licences to four new insurance companies to start operations before the end of the current financial year.

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

R Kannan, member actuary, Irda, said the regulatory authority has issued licences to six companies so far in the current financial year.

The life insurance companies are Aegon Religare Life Insurance Company (a joint venture between Dutch company Aegon and Ranbaxy-promoted Religare), Canara HSBC OBC Life Insurance (JV between Canara Bank, HSBC and Oriental Bank of Commerce), and DLF Pramerica Life Insurance Company (JV between IDBI, Fortis and Federal Bank). With the three new entrants, the number of life insurance companies has increased to 20, while the number of non-life insurance firms has risen to 19.

Total 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 year earlier. Life insurance firms collected a 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).