It may be co-incident or it may be side effect of Obama’s trip to India. American insurer soon will invest in Indian Insurance Industry.
India’s one of the major consumer electronic company Videocon has announced its plans of entering into Insurance industry.
MR.Venugopal Dhoot. CMD. of Videocon said we will soon enter into financial services through general insurance company joint venture with American Insurer Liberty Mutual Group.
The foreign partner will hold up to 26% stake in joint venture as allowed in the act. Videocon will own majority of share. Agreement between Videocon and Liberty Mutual Group is expected to be signed soon.
The General insurance company will invest $67 million as initial capital. In the five year they will increase their investment up to $100 million.
The joint venture will be applying for necessary licenses from IRDA in month of December. Company is hoping to get operational from September 2011.
Joint Venture primarily will be focusing on personal non-life products such as motor, health, homes and small commercial business solutions said by president of LMG.
India’s insurance industry is a growing industry. New companies are looking to enter in market, companies like SBI General, L&T General has newly entered into the market. And now news about Videocon entering into insurance joint venture with American Insurer which is certainly a pleasing to hear for Indian Insurance Sector.
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