Max Bupa might just become one of the first insurers to benefit from the proposed hike in foreign direct investment (FDI) limit in the insurance sector.
Max Bupa’s British stakeholder, Bupa, on Monday said it has decided to increase its stake in the Indian firm from 26% to 49%.
The statement has come close on the heels of President Pranab Mukherjee giving his nod to the Insurance Laws Amendment Ordinance 2014. David Fletcher, managing director (international development of markets), Bupa, said, “With our partner Max India, we are committed to supporting Max Bupa’s growth and helping Indian consumers live healthier and more successful lives.”
Max Bupa is a joint venture between Max India, which owns 74% of Max Bupa, and Bupa, a UK-headquartered global healthcare group.
Rahul Khosla, MD of Max India, said, “As Max Bupa prepares itself for its next wave of growth, it will stand to benefit from Bupa’s expertise in areas such as under-writing health risks and product innovation.” Max Bupa said the application to increase Bupa’s shareholding in Max Bupa wiykd be subject to the successful passage of the legislation on FDI in insurance sector, and regulatory and legal approvals.
“The Union Cabinet had approved the promulgation of the Insurance Laws (Amendment) Ordinance 2014 to amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act of 1972 and the Insurance Regulatory and Development Authority Act of 1999, in accordance with the Insurance Laws (Amendment) Bill 2008 as reported by the Select Committee of the Rajya Sabha, and for suitably introducing it in the Parliament in the next session for consideration and passing,” according to the website of the government’s Press Information Bureau.