AIG’s Future plans Include holding onto Tata AIG
Reports suggest that AIG are likely to continue to hold on to their stake in its Indian insurance joint venture with Tata & Sons. Tata AIG is the name of the joint venture in life and general insurance which would require a further US$ 15 Million Rs. 69 Crore equity commitment from AIG over the next two years. It is highly unlikely that AIG will not be able to meet such a small commitment given the size of its balance sheet. Doing so would ensure it had exposure to one of the fastest growing economies globally with a population of over 1 Billion.
>> Read more
Tata Has Option To Buy Out AIG
Tata & Sons could decide to exercise its option to buy out the remaining 26% stake it does not already own in its insurance joint venture Tata AIG from its joint venture partner AIG. Currently Tata is the majority partner and owns 74% of the company, this could increase to 100% if AIG decides to sell its stake and the joint venture company would then become a wholly owned subsidiary. Tata & Sons so far have refused to comment on the possibility.
>> Read more
Tata AIG Customers Have No Reason to Worry
Tata AIG policy holders have zero cause for concern and all obligations that company has outstanding can and will be honored. The two joint venture companies, Tata AIG Life and Tata AIG General Insurance are both fundamentally sound, well capitalised and have no exposure to the global credit contagion. Both The companies are a 74% to 26% joint venture between Tata & Sons which has deep pockets of its own to begin with and AIG. “Currently, Tata AIG Life’s capital stands at $293 million and the company’s solvency margin is 304% against the IRDA’s stipulation of 150%” the company said. IRDA is the Indian Insurance regulator and by their standards the company is very solvent.
>> Read more
Clear Trip Offer Travel Insurance to Customers
Following on from my last post, one of India’s best known travel portals cleartrip.com has begun to offer travel insurance for domestic air tickets through Tata AIG, and it’s as simple as ticking a box when you purchase your domestic airline tickets. For the cost of Rs. 129 per round trip, you are covered for the following events :
- Flight Delays
- Medical Expenses whilst traveling
- Lost Baggage
- Flight cancellations, due to sickness, injury or death.
The policy is valid for the duration of the round trip or 30 days from date of booking, and cover ranges from Rs 1,500 to Rs 7,50,000