Reliance Life To Get Licence Only Next Year

Insurance Regulatory and Development Authority (Irda) chairman N Rangachary today said that Reliance Life will only get its licence next year. This follows the promoters decision to go slow on filing the requisite details sought by the regulator even as three new applications are expected to be filed shortly.

Rangachary also said that Irda would be moving its headquarters to Hyderabad in February next year. He said initially a part of the office would shift to the new headquarters.

He said Reliance Life has already received an in-principle clearance, but would get the licence once it submits its infotech plans, which is expected by August 2002.

 

Reliance has decided to go solo in its insurance foray and has already obtained licence for its general insurance venture.

Currently, Irda is awaiting capital infusion from Dabur CGU and AMP Sanmar before giving them the final go-ahead. The two companies have obtained in-principle nod from Irda.

Irda is also processing the applications of Sahara Life and Export Credit Guarantee Corporation.

Irda has asked for clarifications from these companies on certain matters, Rangachary said.

A spate of new applicants are also expected to come to Irda for approval in the next few weeks.

The list includes Hero-Zurich -- a joint venture between the Hero group, international finance major Zurich, Vijaya Bank and Punjab National Bank -- which is expected to apply for both life and non-life ventures.

Hero group would hold 51 per cent, Zurich 26 per cent, PNB 15 per cent and Vijaya bank the remaining stake in both the ventures.

Murugappa group company Cholamandalam is also expected to apply for a general insurance venture soon, the Irda chief said. HDFC, which is yet to finalise its foreign partner, also plans to apply within the next two-three weeks.