New Delhi, Sept. 16: Reports on AIG’s financial predicament has prompted the Insurance Regulatory and Development Authority (IRDA) to seek a status report on the operations of Tata AIG Life Insurance and Tata AIG General Insurance.

The move came even as reports swirled that the global insurer has sought the US Federal Reserve’s aid to overcome the crisis.

The IRDA is concerned that the US insurer might move funds from its Indian insurance venture to overcome its mounting financial trouble.

On Monday, AIG was granted a $20-billion funding by New York state officials. Under the plan, AIG will be permitted to shift the funds from its subsidiaries to the parent company.

Sources, however, said no funds from the Tata-AIG joint venture could be used to bail out the US firm as it was not part of the AIG group.

AIG holds 26 per cent, while the Tatas have 74 per cent in the joint venture.

“A company holding a minority stake of 26 per cent in a joint venture does not have the right to shift funds for its own financial needs. Tata AIG is not a subsidiary of AIG, it is an associate.” the sources said.

According to IRDA norms, promoters of insurance companies need to regularly infuse funds into the equity of their insurance ventures to maintain a solvency margin.

Doubts have been raised over AIG’s ability to inject capital into its Indian joint ventures. Analysts, however, said the solvency ratios for both the life and non-life ventures of Tata AIG were comfortable, based on an analysis in the first quarter of the current fiscal.