Policyholders'' protection regu
By Our Banking Bureau | 20 Apr 2002
Chennai:
The Insurance
Regulatory and Development Authority (IRDA) is considering
bringing in a policyholders protection regulation, which
could include a mandatory free-look period for all policies
and interest to the insured, in case of delayed settlement of
claims.
This was
mentioned by Harbhajan Singh, an IRDA member till last month, at a
seminar on bancassurance, organised here by the Indian Institute
of Bankers and SBI Life. He, however, said the policyholders
protection fund might not materialise.
Singh pointed out in his speech that there were cultural
differences between bankers and insurance companies. "Banking
business is basically laidback, whereas, insurance products are
sold aggressively. My experience as a chairman of a bank is that
the bank staff are not willing to sell their own banks credit
cards, leave alone insurance products." Singh was earlier the
CMD of Punjab and Sind Bank.
IRDA
chairman N Rangachary said there is basically three issues in
bancassurance that of how to remunerate the bank counter staff
who actually deal with the customers; whether or
not all the counter staff should pass the mandatory examination
for selling insurance; whether or not banks could own
insurance companies. "IRDA will evolve regulations, depending
on the opinion that would be gathered."