has failed to take off as expected among the public - the whole industry logged an accumulative $3 billion loss over the last decade.
Indian laws limit foreign ownership in domestic insurers to 26 percent. Government approval for a proposal to raise the limit to 49 percent has been pending for a long time due to opposition by nationalist politicians.
Insurers were also hit by a 2010 clamp-down on the sale of lucrative equity-linked products. Foreign firms remain overshadowed by state-owned Life Insurance Corp of India, which holds an almost 75 percent market share.
Foreign insurers including Britain's Standard Life, Canada's Sun Life, Prudential, Japan's MS&AD, Italy's Generali and Dutch insurer Aegon operate in India through joint ventures with local companies.
HSBC recently launched a process to sell its 26 percent stake in an insurance joint venture with two Indian state-owned banks. Dutch banking and insurance group ING and New York Life have also exited their India insurance joint ventures.
Profit at Aviva's India unit fell by more than half in the financial year ended March 2013 to about 320 million rupees ($5.25 million), while total premium income dropped roughly 12 percent, according to company filings.