Gic Vetting Partners For Health Foray

GIC is in the process of short listing joint venture partners in the proposed company that will be formed to enter the health insurance segment.

While refusing to comment on the specifics because of the on going negotiations, K C Mittal, chairman, GIC, said once finalised, the shortlist will then be forwarded to the government for its approval. Many of the foreign insurance companies, including CIGNA and some pharmaceutical companies, have reportedly made presentations to GIC. Finance minister, P Chidambaram, in the 1997-98 union budget, had allowed GIC to spin off a separate company for concentrating on the health segment.

 

Even LIC could float a joint venture to concentrate on the pension fund business. HDFC has approached LIC for floating a joint venture in this regard.

Foreign insurers are awaiting the IRA to issue guidelines governing this sector before deciding on whether to enter the segment or not. The contentious issues that need to be resolved include the minimum capital the new entrants will be required to bring in. Foreign firms find the Rs 100- crore prescription of the Malhotra Committee on the higher side and want it reduced to Rs 30 crore initially.