New Delhi, Aug. 8 (PTI): Leading healthcare provider Apollo Hospitals Group has forayed into health insurance sector through a joint venture with Germany-based DKV AG and has formed an entity Apollo DKV Insurance Company.

DKV AG will have 26 per cent stake and Apollo 74 per cent in the newly-formed company. They have jointly invested Rs 108 crore to start the new venture.

"The company would start its operation by mid-September and in the next two-three years, we are planning to insure about one million lives in the country," Director Apollo DKV Jochen Messemer told reporters here.

"Our entry into health insurance is a logical extension of our continued contribution to healthcare delivery in India," another Director Apollo DKV Shobana Kamineni said.

Apollo DKV would start with six regional offices in major cities in the second year of its operation it would expand to 25 cities and by 2010 and later to over 100 cities across the country.

The joint venture initially propose to offer a comprehensive range of products covering in patient hospitalisation cover, critical illness cover, overseas travel and health cover and personal accident covers.

The company will operate as a stand-alone health insurer and plans to offer innovative health insurance solutions covering the entire healthcare spectrum.