The insurance regulator is, however, likely to bring out the road map for implementation of risk-based solvency norms by the end of this fiscal. "There is no fear at all. There is no need to review the solvency margin," said R Kannan, Irda member, at an insurance seminar organised by PHDCCI on Friday.

Last week, Irda sought a business report from the American International Group (AIG) and Tata's joint venture firms on their course of action following the US crisis . "What is the local partner going to do? As a regulator, we wanted to know," said Kannan. Presently the regulations require insurers to maintain a solvency margin of 150%.

AIG has a 26% stake in each of the two life and general insurance ventures with Tata group. The American insurance giant, AIG last week, agreed to a $85 billion federal bailout that will give the US government 80% ownership, averting a possible collapse under mounting mortgage losses.

Mr Kannan said that the regulator was not in favour of forced sale of Life Insurance Corporation's (LIC) stake in different firms to a mandatory level of 10% of the equity. "It is an issue on which we are in touch with LIC. We don't want forced sale so that LIC offloads shares in the market and gets lower returns on investment," he said.