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Life Insurance - Why investment with private insurers could be dangerous?

27 Jan 2003

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It may be recalled that most of the tie-ups that Indian corporates have entered into in the past with foreign partners have not had a high success rate.

And the reasons for break-offs have ranged from changes in management strategy mid-way to disagreement on who should have management control to poor corporate governance. Take for example the coming together of Ford and Mahindra and Mahindra, Kinetic and Honda, LML and Piaggio - few examples you could consider.

Also note that if a war breaks out in the foreign partner's country it could have a bearing on the insurance operations of the company.

If there are political differences between the governments of both countries it may have a bearing on both companies.

Also there could be political changes or upheavals that could seriously affect the partnership.

So will you take a chance with your hard-earned money?

Source: DWT BACK

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