Tata-AIG policy holders need not worry

Trouble at American Insurance Group in US will have a bearing on its business in India, particularly its insurance business, which it is running in collaboration with Tata.

However, sources in the industry say that the policy holders need not worry as the financial conditions of insurance subsidiaries of AIG in India is stable, and they can meet all the liabilities arising out of the claims from the policy holders.

Insurance watchdog, the Insurance Regulatory and Development Authority has also expressed concern over the recent developments in the US Financial Markets. AIG, which is a leading insurance group of US, has sought financial support from the Federal Reserve.

AIG is operating in both life and non-life insurance sector. In both the companies, Tata owns 74% stake each and AIG holds the rest 26%. With AIG facing the heat in US, IRDA has asked for a report from both Tata AIG Life Insurance Company and Tata AIG General Insurance Company on the development regarding one of its promoters AIG in the US.