Star Union Dai-ichi to start insurance business

A new insurance venture called Star Union Dai-ichi has been promoted by Bank of India. It has begun its operation along with Union Bank with the capital base of Rs 250 crore, which would be hiked by Rs 450-500 crore in the next five years.

Star Union Dai-ichi hopes to get the license by next two months says it will mainly focus on bancassurance for distributing its products. In this new company Bank of India has a 51 per cent, Dai-ichi and Union Bank holds 26 per cent and 23 per cent respectively.

As per reported by Sify.com, Kamalji Sahay, CEO Star Union Dai-ichi Life Insurance, told Business Line, "We will receive our R1 license shortly and expect to get all the clearances from IRDA in two months. We will begin with a capital base of Rs 250 crore and based on our solvency requirements hike it to around Rs 450-500 crore in the next 5 years." "The Nepal joint venture broke even in two years," Sahay added.