Sundaram Fin, Swiss Firm Plan Venture

The joint venture will apply for licence to enter the general insurance business when the market is deregulated.

For Sundaram Finance the tie-up marks a re-entry into the insurance business as the company was already into the general insurance business before nationalisation. Winterthur Swiss Insurance is the largest insurer in Switzerland and is among the top five in Europe.

For Sundaram Finance, the region's leading non-banking finance company an entry into insurance is a logical step forward considering its huge and loyal investor base the company has built up over the years.

This is the latest in a series of tie-ups finance companies have announced in the recent although the Centre is yet to announce the detailed guidelines for the entry of private sector into the insurance business.