India's leading carmaker Maruti Suzuki has come back to insurance broking business after 2 years. The new company named Maruti Insurance Broking Pvt. Ltd has gained licence from the regulator and will work under the chairmanship of Maruti Suzuki managing executive officer (marketing and sales) Mayank Pareek.
Maruti had been into the insurance business from 2002 to 2010, the year which it sold around 2.5 million policies. The company was barred in 2010 by the Insurance Regulatory and Development Authority (Irda) to sell policies and its licence was cancelled by the regulator.
The licence of the company was cancelled for violating the norm that a foreign company should not have more than 26 per cent stake in an insurance firm. Japanese company Suzuki owns 55 per cent stake in Maruti Suzuki leading t Maruti forming a new company.
Confirming the details regarding the new insurance firm, Mayank Pareek said that Maruti will now adhere to the guidelines set by the regulator and the brand has established a “separate company with separate infrastructure.” Maruti has also set up two partnerships with insurers as per guidelines set by the industry regulator.
A spokesperson for Maruti said: “In November 2010, we formed a joint venture company, Maruti Insurance Broking Pvt. Ltd, to take care of our growing insurance business and just two months back Irda granted a broker license to the JV company as per its guidelines.”