This decision came during the 125th meeting of the regulator on 19 March 2024, marking a significant entry into the Indian insurance sector. 

With this approval, the count of stand-alone health insurers (SAHIs) in India will rise to seven, adding to the existing six.  

Galaxy is the second stand-alone health insurer to receive the nod from the IRDAI in 2024. This is the sixth registration issued by the authority across various insurance segments within almost a year. 

Galaxy is a venture set up by the TVS Group and V Jagannathan, the founder and former chairman and managing director (CMD) of Star Health and Allied Insurance Company.  

Jagannathan, who resigned from his position in May 2023 and left the board in June 2023, has brought on board S Prakash, the former CEO of Star Health, to lead Galaxy Health Insurance as its CEO. 

The TVS Group will hold the majority stake in Galaxy Health Insurance.  

TVS Motor Company managing director Sudarshan Venu will serve as the chairman of the joint venture, which is starting with an initial capital of more than Rs2bn ($23.96m). 

Citing an insurance source, the Indian Express reported that the new health insurer is set to focus on pan-India operations from the outset and will introduce many "innovative" health insurance products for its customers. 

In January 2024, Narayana Health Insurance Company, supported by Narayana Hospitals, received approval from the insurance regulator.  

The health insurance sector has recorded significant growth post-Covid, surpassing the motor insurance segment, which was previously the industry leader.  

With a growth rate of more than 30%, health insurance has become the fastest-growing segment in the insurance industry.  

The total health insurance premiums are expected to exceed Rs1trn in the current financial year, up from Rs906.67bn recorded last year.