Hyundai Motor India (HMIL), the country’s second largest carmaker, has obtained registration as a direct broker – general, with regulator Insurance Regulatory and Development Authority of India (Irdai), which would allow its subsidiary to look at venturing into the general insurance broking space.
While automotive companies having their own insurance-broking subsidiaries in India are not uncommon, as Maruti Suzuki and Tata Motors also have such operational entities, Hyundai branching out into the general insurance segment makes the move unusual.
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In its FY22 annual disclosures, HMIL said, “During the year, the company has ventured into a new business segment, ‘Insurance’, by promoting a wholly-owned subsidiary, Hyundai India Insurance Broking Private Ltd. The new company has obtained registration with Irdai as a direct broker – general.”
“The company will initially cater to servicing motor insurance policies and later branch out into other general insurance policies,” HMIL added.
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HMIL as on March 31, 2022 had invested an amount of `4 crore in various tranches in Hyundai India Insurance Broking (HIIBPL) and was allotted 4 million equity shares of `10 each, as against the said investment.
A further investment in HIIBPL of `4 crore was made for a further allotment of 4 million equity shares of `10 each on June 17, 2022 as against the said investment.