Banks May No Longer Sell Insurance

By Hemanth | October 12, 2015

 

Insurance policy

Remember when you picked up a life insurance policy at your bank from the very conveniently placed insurance desk inside the bank premises?

Well, that may be soon a thing of the past.

If the Insurance Regulatory and Development Authority of India (IRDA) has its way, that is.

The IRDA has recently asked banks to be accountable for the insurance policies they sell through their branches, rather than being just distribution partners of insurers.

What this may do is drive banks to form joint ventures instead of mere alliances, and become equity partners. However, they may command a premium on their equity ownership in order to compensate for the increased risk liability. Whether this materializes or not is to be seen.

If this initiative does take off, you can rest easy that the insurance policy you pick up when you visit your bank the next time is the right one for you and has not been forced down your throat like it may be happening today.

Additional Reading: Emerging Health Risks in 2015: Why it Makes Sense to Insure Yourself

Remember, whether banks continue to sell insurance or not, you still can search online and pick up the insurance policy of your choice – be it health insurance, life insurance, car insurance or any other type of insurance.

 

YOU MAY ALSO WANT TO: Get an insurance premium quote from our Insurance Eligibility Calculator.

 

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