GIC is a statutory body under the Indian Act 1938 and Insurance represents all non-life insurers in the country.

There are 22 general insurance companies in India. Most of them complied with the Directive, the GIC, but others have gone ahead and submit their bids Jeevandayi Rajiv Gandhi Arogya Yojana (RGJAY) system, the Government of Maharashtra.

RGJAY CEO, K confirmed that ICICI Lombard Venkatesham ET, Star health insurance and public sector New India Assurance, are the three final candidates.

ICICI Lombard offers, ET learns, is the smallest.

Under the offer, the offeror shall obtain a premium of about Rs 2000 crore. In response a spokesman for the application of ET ICICI Lombard said the company received the LCP Directive, after submitting the application.

"Communication to the Council of GI was the result of the failure to offer a RSJY application" ICICI Lombard said the spokesman.

The company also said that the directive was recommendation.

"We warn the communication IM recommendation of the Council," the spokesman said.

"We call on all non-life insurance companies to give up, agreeing to" support "clause 14 of Chapter 1 of the system," says SL Mohan, Secretary General of the ICM in a letter to all non-life companies insurance.

The ICG also refers to an IRDA circular advising insurance companies not to accept profit-sharing, while bidding contest.

Less RGJAY system, insurance companies, it will pay 90% of the surplus that remains after the Government's arguments at the end of politics.

Other non-life insurance companies are not happy with some companies to go ahead despite the directive and the GIC has decided to raise the issue with the Governor and Insurance Regulatory and Development Authority (IRDA), and the state government of Maharashtra.

Source: [ET]