PNB receives RBI clearance for life insurance venture: The RBI has given the Punjab National Bank (PNB) its go-ahead for its proposed foray into the life insurance business. The new company would aim to be a niche player with a predominant focus on the group life insurance segment.

The life venture would be floated jointly with the US based Principal Financial Group and Bangalore-based Vijaya Bank. Berger Paints might also participate in the equity of the life insurance company. The company is to be christened the Principal PNB Life Insurance Co.

The new company would soon be moving the Insurance Regulatory and Development Authority (IRDA) for the final approvals before taking a plunge into the market.

The life company is expected to commence business with a paid up capital of Rs110 crore, a shade above the minimum capital requirement of Rs100 crore. PNB would be holding 30 per cent equity in the company, which is the maximum permitted for banks entering the insurance sector, while the remaining shareholding would be split between Principal Financial, Vijaya Bank and Berger Paints.

Shriram Life Insurance Obtains R1 License from IRDA: Shriram Group, a leading conglomerate in the Indian financial services segment, today announced that Shriram Life Insurance Co. Ltd. has obtained the R1 license from Insurance Regulatory and Development Authority (IRDA). Shriram Group recently entered into a joint venture agreement with Sanlam of South Africa to make its foray into the Indian Life Insurance sector. Shriram Life Insurance Co. Ltd. is set to commence operations by September 1, 2005.

LIC to open 29 satellite offices, launch new policy: Life Insurance Corporation of India (LIC) will open 29 satellite offices in the country and introduce the “Golden Jubilee” policy on September 1, 2005. All the satellite offices would be opened in metros and big towns and linked with respective head offices.

A new ‘Golden Jubilee’ policy would also be unveiled on September 1, 2006 , the day when LIC completes its 50 th year of establishment. This special policy would be of a fixed time frame.

IDBI eyes life insurance business : Industrial Development Bank of India (IDBI) is all set to enter the insurance market. In the first phase, IDBI plans to enter the life insurance sector and later expand the scope to include general insurance products too.

IDBI is exploring the possibility of joining hands with other firms to form a joint venture for its proposed insurance market entry. The institution has started scouting for JV (Joint Venture) partners, both in India and abroad and also initiated dialogue with some. Some other domestic banks may join IDBI in this initiative. It has appointed consultant Watson Wyate to prepare the roadmap for this new venture. IDBI is yet to receive clearances from RBI and IRDA for this venture.

IDBI, which targets over 20 percent Compound Annual Growth Rate (CAGR) growth in next three years, plans to increase the number of its branches to 200 by the current fiscal and to 500 by 2008, from 131 at present.