Mumbai: Tata AIG General Insurance Company Limited and tat AG Life Insurance, the troubled American International Group's insurance joint ventures with the Tata Group, has enough financial capacity to meet its obligations to policyholders, though the American group's financial woes would have a bearing on its Indian operations, finance minister P Chidambaram said.

The Tata Group has assured insurance regulator IRDA that all Tata-AIG payment obligations will be met, Chidambaram said.

He said the Tatas own 74 per cent each of the joint ventures and the group has assured the Insurance Regulatory and Development Authority (IRDA), that the joint ventures are not facing any solvency problem.

''The insurance regulator's chairman has spoken to the Tatas and has been assured that all payment obligations of Tata-AIG will be made,'' Chidambaram said.

He also said the Tata-AIG joint ventures in India should not be compared with that of Lehman Brothers.

Policy holders need not worry as the financial condition of AIG's insurance subsidiaries in India is stable, and they can meet all the liabilities arising out of the claims from the policy holders, the company is reported to have told the insurance regulator.

''Life and general insurance companies promoted by Tata Sons and Tata AIG Life are registered under Indian Companies Act and are bound by the provisions of the Insurance Act and other Regulations. The accounts of these two companies as on 31 March 2008, indicate that both companies have satisfactory solvency margins which are adequate to meet liabilities,'' IRDA said in a press release on Wednesday.

The American International Group has also issued a release, saying its commitments to AIG companies around the world will continue to be honoured.

IRDA, however, has expressed concern over the recent developments in the US financial markets. AIG, which is a leading insurance group of US, has sought financial support from the Federal Reserve. AIG is operating in both life and non-life insurance sectors in India, where the Tata Group owns 74 per cent stake each and AIG holds the rest 26 per cent. IRDA has asked for a report from both Tata AIG Life Insurance Company and Tata AIG General Insurance Company on the development regarding one of its promoters AIG in the US.

Chidambaram's comments came as US authorities grappled with the financial crisis triggered by the collapse of merchant bankers Lehman Brothers.

The assurances, however, have not helped cool nerves of some policyholders who are sceptical about the company's ability to service claims.