Company has planned to go all alone in its new venture

Larsen & Toubro (L&T) has declared its intentions to foray into the Indian general insurance business in the next six months. The company has planned to go all alone in its new venture – reported Business Standard.

There are about 20 players, including four public sector firms, in the non-life insurance business. According to the guidelines, a foreign partner is allowed 26% stake in non-life ventures. They, however, cannot set-up wholly-owned subsidiaries in India.

The General insurance would be a separate entity and the expenditure needed for the venture will be in the form of equity, and that will be from the parent L&T. The company is expected to approach the Insurance Regulatory and Development Authority (IRDA) for approval.

Y M Deosthalee, CFO of L&T, said: “We have decided to enter into general insurance business considering the long-term potential of the business going forward. We are not partnering with anybody at this point of time for our general insurance foray which will take shape in six months. We would like to go on our own.”