Healthcare and insurance company Max India has entered into a health insurance joint venture with United Kingdom’s British United Provident Association (BUPA), a health insurance major. In this joint venture, Max India will wield control over 50 per cent stake, promoter and chairman Analjit Singh and his family will hold 24 per cent, whereas BUPA will hold the remaining 26 per cent stake. The UK health insurance major has the option of hiking its stake to 50 per cent after the sector opens up.   

A statement issued by Max India informs that the joint venture will invest Rs 100 Crore initially and will be called Max Bupa Health Insurance. As Max India already holds a 26:74 general insurance joint venture with the New York Life Insurance of United States, this BUPA one is its second venture in the insurance sector. Speaking about the collaboration with BUPA, the chairman of Max India, Analjit Singh, said, ‘Our decision to partner with BUPA was based on the synergies and unique strengths that BUPA brings to this venture.’

The chairman of Max India further went on to add that BUPA is the leader in the health insurance sector of all the markets the world over, where it operates. ‘It has a 45% market share in the UK health insurance market. It is the market leader in Spain, in Europe and in emerging markets,’ Mr Singh pointed out. Ray King, the BUPA group chief executive, on the other hand, explained that the key reason for entering into this alliance with Max India is the massive growth potential the Indian health insurance sector nurtures.