| IRDA speculates on allowing banks to have tie-ups with more than one Insurance Company |
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| Written by Site Administrator |
| Tuesday, 13 October 2009 10:44 |
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Regulator of the Insurance sector in India, IRDA is looking into the option of allowing banks to tie-up with two or three insurance companies to sell their insurance products. As of now, banks are allowed to sell insurance products of only one insurance company. There have been several requests by Insurnace Companies to relax the present rule of tie-up with only one bank. A seven member committee of IRDA is set up to study the existing framework of tie-up and recommend a new structure to accommodate the modifications required. The committee will look at the operational feasibility of the changes required keeping in mind the general interests of a policyholder. A member of IRDA is reported to have said that they would like to test it by initially allowing banks to have tie-ups with two or three banks. If it works out fine, they would then revisit the concept. This distribution model via banks is commonly referred to as ‘Bancassurance’. Comments (0) |
| Last Updated on Tuesday, 13 October 2009 19:41 |