Maruti Suzuki India Ltd.

Country’s largest car maker- Maruti Suzuki (India) - after being bared for two years from selling vehicle insurance policies - is all set to re-enter the insurance broking business with a license from regulator as mentioned in some media report.

Maruti had been selling motor insurance under the Maruti Insurance brand since 2002 until it was barred by the Insurance Regulatory and Development Authority (IRDA) in March 2010 for allegedly violating foreign investment norms. Local rules restrict foreign companies from holding more than 26% in an insurance venture.

With parent Suzuki Motor holding an at least 55% stake in Maruti, the latter will not be able to hold a 74% stake because of its overseas partner’s indirect holding. Maruti, to adhere to the guidelines set by the regulator this time around will set up a separate company with separate infrastructure.

Meanwhile, the company sold a total of 125,952 vehicles in the month of March 2012, up by 3.3% as compared to 121,952 vehicles in March 2011. This includes 13,228 units of exports during the month, registering 14.7% increase.