Kolkata-based non-banking financial company, Magma Fincorp, has received the first phase of licence from the IRDA, the insurance regulator, to enter the general insurance space through Magma HDI General Insurance.
The company had applied for a licence in March 2010 to enter the general insurance business.
Earlier, Kolkata-based non banking financial corporation Magma Fincorp Ltd has got necessary approvals from the Reserve Bank of India for its proposed general insurance venture jointly with HDI-Gerling International Holding AG of Germany. The venture will have an initial investment of Rs 110 crore.
There are three stages of approval required for getting a licence for an insurance company. R1 (or first phase) is the preliminary approval given by IRDA wherein the regulator evaluates the promoters.
In the second stage (R2), IRDA looks into the business model of the company and in the third (R3), it looks at the formation of the company.
Magma Fincorp and its associate company, Celica Developers, have formed a joint venture with German insurer, HDI-Gerling International for the general insurance business to be conducted through Magma HDI General Insurance.