The Hindu Business Line : Max NY Life to double capital base

Panaji, Oct. 15 Max New York Life Insurance will nearly double its capital base to around Rs 1,550 crore by the end of 2008. The company’s current capital base stands at Rs 807 crore.

Mr Gary Bennett, CEO and Managing Director, Max New York Life, said that the company would receive an infusion of around Rs 750 crore over the next 15 months.

“We plan to make significant investments in branch offices, development of new products and training of our insurance agents,” he said.

“We plan to open 150 offices by the end of 2008 and expand our presence to over 200 cities. Around 50 will be opened this year and another 100 next year,” Mr Bennett elaborated. At present, the company has 175 offices in 122 cities.

He said that the planned expansion and growth meant that the company hoped to achieve break-even only by the end of 2009.

Like its peers, MNYL will also hit the market with standalone health-insurance products early next year.

Defined benefit cover

“We are looking at introducing defined benefit policies, which will cover critical illnesses and offer hospital cash. We may also introduce long term care policies as well as covers with a savings component," Mr Bennett.

Life insurers like LIC and ICICI Prudential Life are also working on health policies with a savings element. But these products may hit a stumbling block with the insurance regulator, as tax benefits, which can currently be availed on health policies (premium up to Rs 15,000 and Rs 20,000 for senior citizens) may not be extended to savings oriented covers.

MNYL is also designing specific products for bancassurance including covers for reverse mortgage. The alternative channels, including bancassurance contributes around 25 per cent of the company’s business and Mr Bennett said that MNYL was looking at new tie-ups.