IRDA approves insurance joint venture by Videocon, Liberty Mutual

Mumbai, Nov. 3: The Insurance Regulatory and Development Authority has given its go ahead to the Videocon Group's general insurance joint venture with the US-based Liberty Mutual Group, said a senior IRDA official.

Videocon Industries and Liberty Mutual had announced their intention to form a general insurance joint venture in November 2010.

Liberty Mutual will hold a 26 per cent stake in the JV with Videocon holding the remaining stake. The foreign insurer will have the option to increase its stake in the joint venture if regulations permit.

The two companies had said earlier that they will start the insurance JV with an initial capital of around $67 million.

Liberty operates in 17 countries worldwide with a mix of offerings in the insurance space ranging from auto, home and life, as well as personal liability insurance.

This is Liberty's second foray into the Indian non-life segment. It had earlier tied up with FMCG major Dabur to form a general insurance venture in 2008. They parted ways later on due to the economic slowdown.

Videocon is one of the largest players in the consumer electronics and home appliance space and operates in seven key sectors such as consumer electronics, home appliances, direct-to-home TV services, mobile handsets, GSM services, oil and gas services, LCD panel manufacturing and colour picture tube glass.

When contacted, the Videocon group chairman, Mr Venugopal Dhoot, declined to comment on the development.