Mumbai May 8: Insurance Regulatory and Development Authority has cleared license for Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited and Oriental Bank of Commerce to jointly launch a life insurance company in India. The new Company, to be called Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited, has already been capitalised at Rs 325 crore (approximately USD 81 million).
Commending on the development, Canara Bank Chairman and Managing Director M B N Rao stated in a release that a project team has already been established in Gurgaon to build a significant operational and sales support capability that would be needed to serve the immense distribution reach of the shareholders. HSBC Insurance (Asia-Pacific) Holdings Limited Chairman and Chief Executive Officer David L Fried in the release said, with the support of Canara Bank and Oriental Bank of Commerce and HSBC's insurance expertise a significant progress had been made to get the joint venture ready to operate. All three shareholders are committed to ensure that the new Company is operated to world-class standards and is competitive in India's fast-growing insurance market.