Banks can only sell standard insurance products through - TopicsExpress

Banks can only sell standard insurance products through branch IRDA (INSURANCE REGULATORY DEVELOPMENT AUTHORITY)Said— Banks will be allowed to sell only standard or vanilla insurance products through their branches following the relaxation of brokerage norms. It will also address various concerns of the Reserve Bank, including those pertaining to conflict of interest. RBI does not want banks to undertake new risk in the form of insurance broker. A broking licence will allow a bank to sell products of multiple insurance firms, compared with the current bancassurance model that allows lenders to sell products of just one life and non-life insurance company. Banks have wide network of delivery channel, over 1 lakh branches, which can be leveraged to increase insurance penetration in the country. The licence, once issued, will be valid for three years from the date of issue, it said, adding that the renewal of licence can be applied 30 days before expiry of licence.

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