HDFC Life, Max Life working on issues raised by Irdai: Vijayan

HDFC Life and Max Life are working on the issues raised by insurance regulator last month with respect to their merger, Irdai Chairman T S Vijayan said today.

"There are some issues, the companies are working on it. That is a complex issue. I won't be able to explain it," Irdai Chairman T S Vijayan told reporters on the sidelines of the Ficci Annual Health Insurance Conference when asked about hurdles to the merger.

"Time taken for approval depends on the companies. Some discussions are going on."

Last month, Irdai had expressed reservations about the current form of amalgamation of Max Life and HDFC Life into a single entity.

The scheme proposes merging of insurance business in an agreement among Max Financial Services (MFSL), the subsidiary Max Life Insurance Company (Max Life), HDFC Standard Life Insurance Company (HDFC Life) and Max India.

HDFC Life and Max Life had filed an application seeking in-principle approval of Irdai for the proposed amalgamation scheme on September 21, 2016.

Asked if any other insurance company has approached the regulator to raise funds from the public, Vijayan answered in the negative, saying "no body else has applied for listing".

Clarifying on extension of policy renewal period post demonetisation on November 8, he said: "Usually, for the renewal of the policy, one month grace period is given. Companies have agreed to extend it to two months. So, even if temporary cash flow problems are there, premium will come in future."

He added: "Anti-money laundering (measures) are there... if they (customers) are paying high premium amount in cash, they need to provide PAN number. So, that type of money doesn't come into the system at all."