The IRDA will register two companies in the life sector and two in the general insurance segment. While Royal Sun Alliance-Sundaram Finance and Reliance will be issued licenses for starting general insurance businesses, HDFC-Standard Life and ICICI-Prudential will be given registration for the life segment.

According to the procedure prescribed by the IRDA, a company has to first file an R-1 application to showcase its financial strength and its ability to operate an insurance business. In addition, the company also has to present a viable business plan to the IRDA. After scrutinising applications, the IRDA invites R-2 applications seeking further details and virtually confirming that the registration proposal is in order and is acceptable to the IRDA. All these four companies, who have received notices from the IRDA will be granted licenses. IRDA chairman N Rangachari, recently clarified that all companies who will be asked to submit R-2 applications will be invariably granted registration. The other companies, which have applied for licenses and are still awaiting a response from the IRDA include Dabur Allstate, Reliance (life), Kotak Mahindra-Old Mutual, Max-New York Life and IFFCO-Tokyo Marine and Fire Insurance. Recently, the Tata Group has applied for licenses for life and general insurance segmentsalong with AIG Inc.

The four companies that have been asked to submit R-2 applications were among the first to have applied for registration after the IRDA started inviting applications from August 16.