IRDA may allow banks to represent two insurers
04 June 2011
The Insurance regulatory and Development Authority said on Friday said it was considering a proposal to allow commercial banks to sell the products of two insurance companies each in the life and non-life categories.
Currently, a bank is allowed to sell the products of only one company each in a life insurance, a general insurance, and a health insurance company. The new move is aimed at increasing insurance penetration.
''The committee (set up by the regulator) has recommended that banks should be allowed to tie up with two insurers. We are in the process of examining the recommendation,'' IRDA chairman J Harinarayan told reporters in New Delhi.
The insurance regulator had set up a 10-member committee in 2007, headed by former LIC chairman N M Govardhan, to suggest ways to increase insurance penetration.
Insurers have long been demanding a relaxation in norms for bank distribution channels for their products.
IPO guidelines Harinarayan also said IRDA's guidelines on allowing life insurance companies to raise funds from the capital market would be out by this month-end.