Stricter norms for banks selling insurance: IRDA
By Neelima Shankar
Jun 5, 2013
Print    Email    RSS   

The insurance regulator, IRDA may tighten the norms for banks selling insurance products. The banks will have to renew at least half of their life insurance policies they sell, failing which they risk losing the licence to distribute insurance products.

In order to avoid mis-selling of the insurance products, IRDA has asked the banks to renew their policies.

In 2011, IRDA had set up a minimum policy renewal criteria for individual insurance agents. It directed insurance companies to terminate the contracts of agents who do not get at least half of the policies sold by them renewed in the subsequent year.

"We have noticed some instances of forced selling of insurance products by banks while advancing loans to customers. Hence, we are looking at calculating loss ratio (the ratios of premiums paid to the claims settled) in respect of business procured by banks so as to assess the quality of the business," said a senior regulatory official.

"One of the factors that affect persistency is the after-sale service provided to the policyholder. Currently, large number of policies are left without being serviced after the policy is sold, resulting in the policies getting lapsed," the senior official added.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

A general guide to Auto Insurance
Tips to reduce Auto Insurance Premium
Some New Ways to Save on Your Car...
Guide to get a an auto insurance claim...
Kinds of auto insurance coverage

kya account no 05890100004013 uco bank ke hi he...
i want account number i lost my passbook
How many rs balance in my account sbi
Pl. find the address of account holder Accont no....
NRI Quash of FIR best lawyer advocate india...

New endowment plan launched by PNB met life Feb 18, 2015
Yes bank bagged High performance award 2014. Feb 13, 2015
Banks may strike at February end Feb 4, 2015
Reliance industries to enter in to banking in association with the SBI Feb 3, 2015
OBC bank reported a drop down in its net profit Jan 30, 2015
News Archive