In the biggest consolidation in the country's private insurance sector, Max Life Insurance and Max Financial Services will merge into HDFC Standard Life Insurance."The Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company Ltd, and Max Financial Services Ltd have approved a potential combination through a merger, HDFC said in an NSE filing. Max Financial Services said the agreement provides for a mutually agreed exclusivity period for due diligence, and discussions between the parties in relation to the proposed transaction.The proposed arrangements will be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory and other third party approvals. At present, 49 per cent FDI is allowed in the insurance sector.