There will be two separate companies for the two segments with Rs 100 crore of capital. Tatas through their the holding company Tata Sons, will hold 74 per cent stake while AIG will pick up the balance 26 per cent.

While the company has already put in place a strong team for the non-life operation, it is in the process of setting up a similar team for the life segment.

Dalip Verma will head the non-life operation. A hunt is on to find a head for the life operation. Recently, Sunil Mehta from Citibank joined the joint venture as the administrative head.

To begin with, the non-life segment plans to provide corporate and consumer line of insurance products with a distinct customer service. AIG, which is playing multiple roles as an investor in different sectors, has already invested over $400 million in India. The financial conglomerate plans to invest around $1 billion in India.