“The regulator is considering to open up distribution channel ... the final call by Irda will be taken soon,” Life Insurance Council Secretary General S B Mathur said on the sidelines a conference of CEOs of insurance companies here.
As per the current practice, a bank is allowed to sell products of a life insurance company, a general and a health insurance firm. There has been long pending demand from insurers for relaxing bank distribution channel. To study distribution channels — agency, bancassurance, referrals, direct sales etc, the regulator had set up a 10-member committee, headed by former LIC chairman N M Govardhan in 2007. The committee which submitted 60-page report in 2009, suggested various measures for increasing distribution.
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