Insurance Regulatory Development Authority Of India (IRDA) on Friday gave approval in principle to Reliance's proposal for venturing into life insurance even as TATA-AIG said it was awaiting clearance for a similar proposal.
IRDA on Friday sent a communication to reliance confirming 'in-principle' clearance for life insurance venture, to start with a equity capital of Rs 200 crore, official sources said in new Delhi.
When contacted, reliance spokesperson from Mumbai confirmed to PTI the clearance but declined to give details of commencement of the venture.
Meanwhile, TATA-AIG said in Mumbai that its life insurance proposal was still pending with IRDA although it got an 'in-principle' clearance for general insurance venture for which it would launch its products next month.
The company, a 74:26 joint venture between TATA group and AIG of America, would complete the remaining formalities as required by IRDA for general insurance venture shortly, an official release said adding it would be with an initial capital of Rs 125 crore.
IRDA had granted licence to Reliance for general insurance venture last year and the Mumbai based group is going solo on both life and general insurance ventures.
Bureau Report