Larsen & Toubro (L&T) a multi-crore diversified group announced today that it is going to enter the general insurance business in near six months and would go single in its new venture.

Y M Deosthalee Chief Financial Officer L&T limited told reporters “We have decided to enter into general insurance business considering the long-term potential of the business going forward.”

At present there are about 20 players including 4 public sector firms in the non-life insurance business.

He further added “We are not partnering with anybody at this point of time for our general insurance foray which will take shape in six months. We would like to go on our own.”

A foreign partner is allowed only 26% stake in non-life ventures as per the existing guidelines. But they are not allowed to set-up a fully owned subsidary in India.

General insurance would be a separate entity and the money required for the venture essentially will be in the form of equity and that will be from the parent L&T, the engineering and construction major, Deosthalee said.

“The businees plan is being finalised for funding of the insurance foray,” added Deosthalee.

L&T, which has a significant presence in IT and finance, is expected to approach the Insurance Regulatory and Development Authority (IRDA) for approval.

The company also got plans to venture into asset management business in the near future.