Business IdeasBaroda Legal & General expects Irda approval by next month
Baroda Legal & General Life Insurance, an insurance venture promoted by Bank of Baroda, today said it is expecting IRDA clearnace by November-end.
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"We have secured R2 approval from the regulator last week and is awaiting R3 (final) approval," Baroda Legal & General Life Insurance CEO P Nandagopal told PTI.
"We expect the final approval in a month or so," he said, adding, thereafter the company will file draft offer for its products.
The proposed venture should underwrite its first policy before March 2010, he said.
The three-way venture formed in November 2007 would have initial paid-up capital of Rs 200 crore.
While the lead partner Bank of Baroda would have 44 per cent share in the venture, another domestic partner Andhra Bank would hold 30 per cent share. The remaining 26 per cent would be with the UK-based Legal & General.
The two banks have over 4 crore customers, who could be the captive client for the proposed insurance business. Together these banks have network of about 4,000 branches across the country.
The bank¿s plans to enter the insurance sector was cleared by its board in September 2006.
There are already around 21 players in the life insurance sector, with the latest being Star Union Dai-ichi Life, which started its operations in February this year.
Bank of India, the lead partner of the insurance venture holds 51 per cent stake in the company while Union bank of India and Dai-ichi Mutual Life holds 23 per cent and 26 per cent respectively.
Other banks which are into life insurance includes State Bank of India, Canara Bank, IDBI Bank, and ICICI Bank.