The Indian insurance regulatory body, the Insurance Regulatory and Development Authority, has said that it did not expect any immediate threat to the Indian operations of troubled insurer AIG.

AIG has joint ventures with India's Tata Group for both life and general insurance businesses. Both are run as independent joint venture companies, in the name of Tata AIG Life Insurance Co Ltd and Tata AIG General Insurance Co Ltd.

AIG holds 26 per cent in each of the companies, which is the maximum limit permissible as per Indian regulations.

Though IRDA said that there was no immediate threat to the Indian operations of AIG, there could be repercussions in around a year if there was any disruption in capital flow to the two joint venture companies.

The present solvency margins of the joint ventures insurance company of Tata AIG is at a comfortable 2.3, well above the mandated 1.5.

Business projections and the capital infusion plan of the company are also of relatively smaller amounts. Moreover, AIG has to provide only 26 per cent of those, in line with its shareholding.

The IRDA has asked for clarifications on the operations of both companies, and does not expect any issue at the present time so long as the companies maintain their solvency.

Reports indicate that the two life and general insurance joint venture companies will file their report with the IRDA in around two days.

AIG, the foreign partner had its ratings downgraded by rating companies Standard and Poors, Moody's and Fitch.

AIG took hits to the tune of $18 billion in the last three quarters, linked to guarantees it wrote on mortgage-linked derivatives.