The IRDA board which met here on Monday under the chairmanship of NI Rangachari has decided to grant licences to these three companies under Sec 3 of the Insurance Act 1938.

The IRDA board also considered the applications of ICICI Prudential Life Insurance Company, Iffco Tokyo Marine Insurance and Max India New York Life Insurance and decided to grant in-principle registration to these companies.

However, these three will be required to furnish more details about their respective financial strengths and business plans to the IRDA before getting registration. Talking to The Financial Express, HDFC chairman Deepak Parekh said the joint venture would have a total equity of Rs 168 crore. HDFC would hold 81.4 per cent of the equity and the remaining 18.6 per cent would be contributed by foreign partner Standard Life.

The HDFC Standard Life proposes to go in for what is described as a "soft launch" in December 2000 and officially open the business in January 2001 with offices in 12 cities.

Expressing delight at being awarded an operating licence, Royal Sundaram Alliance Insurance chairman GK Raman said: "We will serve the Indian consumers with a portfolio of insurance products suited to their interests. Service and customisation will be the defining features of our new venture." Mr Micky Brigg, managing director of the joint venture company, said: "India is a high priority on Royal Sun Alliance Group's strategic business map. We will support the Indian venture with world-class underwriting, risk management and claim-handling techniques."