With opening up of the insurance sector appearing on the not-so-distant horizon, other foreign companies looking for a slice of the Indian market also indicated that the MoUs signed with Indian companies for joint ventures might be reworked to a large extent.

Explaining the rationale for the choice of his joint venture partner, Kulk said DCM Consolidated brings knowledge of the local environment to the joint venture but depending upon the capital structure that is finally permitted, the company does not preclude inviting another joint venture partner.

The company does not view the Malhotra Committee recommendation of a start-up capital of Rs 100 crore as too high. Asked if Indian joint venture partners are not in a position to contribute their part of the equity will Royal and Sunalliance be comfortable with a nominee partner, Kulk said that it an option open for his company.

Options have been kept open by other insurance majors as well. Metlife, a life insurance major which has tied up with the MA Chidambaram group has kept its option open about tying-up with a particular group company.Depending upon the final regulations a group company will be chosen, Metlife's representative VS Mysore said. AC Muthiah is believed to be taking a special interest in working out his group's strategy for the insurance market.

It will be the group's financial services company which will sign the MoU, Venkatesh indicated.

After the global merger of Commercial Union (CU) and General Accident (GA) the MoUs the two companies had signed have been reworked. CU which has signed a MoU with The Hindustan Times announced that it will apply for a licence for the life sector. Initially the plans of this MoU were to get into the non-life sector. Subsequent to the merger, GA announced that it will confine itself to the non-life sector in its joint venture agreement with the Wadias of Bombay Dyeing.

Companies which are expected to announce joint venture partners soon are Aetna Insurance and Sun Life of Canada. Both companies are understood to be in the last round of negotiations with their respective partners.