General Insurance Likely to get Final IRDA nod in 7-10 Days

The changing business dynamics of the Indian general insurance space is attracting new players. Sources tell CNBC-TV18 that DHFL General Insurance, which is a wholly owned subsidiary of the mortgage firm DHFL is expected to receive final approval for its general insurance venture from Insurance Regulatory and Development Authority (IRDA) in the next 7-10 days.

On receiving the IRDA approval, the company will start its business operations in the next 2-3 months, which could be by September 2017, with an initial capital of Rs 190 crore. The insurance regulator has a mandated capital of Rs 100 crore. Sources say the company has a strategy in place to significantly scale up its investments in the general insurance, in the first two years of operations of the company.

Answering a written enquiry by CNBC-TV18, the company said they already have the first two approvals needed for this venture and they have submitted papers for the final approval. The general insurance industry as a whole is about 1.2 lakh crore, so massive opportunity for new players.