Insurance Regulatory and Development Authority has permitted Sahara Group to enter life-insurance segment, and issued 12 letters of intent to insurance broking entities, including three having foreign equity stake, to conduct business in India.
With this the number of players in life and general insurance segments in the country rose to 26, Irda chairman N Rangachary told reporters at a seminar organised by Bombay Chamber of Commerce and Industry in Mumbai on Tuesday.
Irda received 43 applications for insurance-broking activity, of which 12 have been issued letters. "They will have to bring in stipulated capital and induct qualified persons", Rangachary said.
Except for few, most entities who have applied for broking business are competent with industry knowledge, he said adding Irda has put stringent conditions, including capital requirements, for insurance-broking permits.
"We expect the brokers to follow a code of conduct and for any failure to follow norms, they will have to face consequences", Rangachary said.
