Provide status on insurance arms: IRDA to Tata AIG

Insurance regulator, IRDA has asked the two Tata AIG insurance arms for some details pertaining to trouble at AIG globally. The next 48 hours are extremely crucial in deciding the fate of Tata AIG life and general insurance business. The Insurance Regulatory & Development Authority of India, or IRDA, has asked Tata AIG to provide an operational status on both the life and general insurance operations, which is expected in a day or two. IRDA said there is not much to worry about as of now, but their main concern is regarding the solvency margins of insurance companies. As of now, they are quite comfortable in that respect. IRDA sources said, they are keeping a close tab on developments at Tata AIG. As per the current FDI limit, AIG holds 26% in the joint venture. Tata AIG’s life and general insurance companies are currently ranked at ninth position. The paid-up capital for Tata AIG’s life and general insurance business is Rs 1,250 crore and Rs 225 crore respectively.