INDIA BUSINESS WORLD - JULY 1st - JULY 31st - 2008
MAX INKS PACT WITH UK CO FOR HEALTH INSURANCE JV
HEATHCARE and insurance company Max India has forayed into health insurance through a joint venture (JV) with UK health insurance major British United Provident Association (BUPA). Max India will hold 50%, promoter and chairman Analjit Singh and his family will hold 24%, and BUPA will hold the remaining 26%.
This would be third standalone health Insurance company in India and it will compete with Chennai-based Star Health Insurance and Apollo-DKV. BUPA has the option of raising its stake in the JV to 50% when the sector opens up. At present, Indian laws restrict FDI investment in insurance sector to 26%. The JV, Max Bupa Health Insurance Ltd, will initially invest Rs 100 crore, a Max India release said. This is Max India’s second venture in the insurance sector. It already has a 26:74 general insurance JV with US-based New York Life Insurance. “We have been interested in the health insurance sector for a long time but were waiting for some regulatory reforms to take place. Now that these reforms are in place, we have entered this space. Our decision to partner with BUPA was based on the synergies and unique strengths that BUPA brings to this venture. BUPA has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in and adapt to international health care markets.
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