Banks may sell products of multiple insurers

“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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