Berkshire India Limited received an IRDA approval to distribute general insurance products
Mumbai: Berkshire India Limited a majority owned unit of Warren Buffet’s Berkshire Hathway Inc received a corporate agency license from the insurance regulator to sell and distribute general insurance business products in India according to media reports.
The Berkshire subsidiary would commence its insurance trade by selling motor insurance policies of Bajaj Allianz as a corporate agent. Corporate agency is the only route for the MNC’s to have a controlling stake in insurance business as Indian laws limits the foreign partners investment to 26 per cent, says a report in Economic Times.
The company will sell Bajaj Allianz general insurance policies directly to retail consumers through the Internet on Berkshireinsurance.com and also through call centers The Company would gradually pool in other products such as life and health insurance.
Berkshire Hathway was started in 1839 as a textile company. In the 1960s, however, the company moved out of textiles and expanded into insurance and other industries. Today Berkshire Hathway Inc. provides insurance and reinsurance of property and its insurance business includes life, accident and health reinsurers.
In motor insurance business Bajaj Allianz has the highest gross premium collection among the private players. The company underwrote gross premium of Rs. 818 crore during April-September 2010 Period. Bajaj Allianz has a market share of 20 per cent in the motor insurance business amid private insurers, followed by ICICI Lombard and Reliance General Insurance.