Max India JVs with BUPA to set up health insurance co. in India

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Max India, which operates hospitals and a life insurance business, would hold 50 stake in the joint venture, the Delhi-based company said in a statement.

Of the remaining stake, British United Provident Association or BUPA would hold 26 percent and Max India chairman Analjit Singh would hold 24 percent.

Presently, Indian laws do not allow foreign firms to hold more than 26 percent stake in any joint venture in the insurance sector.

The venture would commence business operations by September 2009 with an initial investment of £12 million or Rs.100 crore.

Max India is already in the life insurance business with the US-based New York Life Insurance.

The new venture will provide a suite of products, including in-patient covers, out-patient covers and preventive care covers, to both consumer and business customers.

"The Indian health insurance market has massive potential, with a growing, young, population. We believe that many of its citizens will be looking for the high quality of care and customer service that Max Bupa will be well placed to offer," said Ray King, CEO, BUPA Group.

"Max India has been in dialog with leading international players for the health insurance business. Our decision to partner with BUPA was based on the synergies and unique strengths that BUPA brings to this venture. BUPA has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in, and adapt to, international health care markets. Through Max India, we will capitalize on our knowledge and experience in the health and life insurance sectors," Max India chairman Analjit Singh said.

According to latest market estimates, the current value of India's health insurance industry stands at $800 million and is expected to rise to $8 billion by 2015.

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