Mumbai: The Insurance Regulatory and Development Authority of India (IRDAI) allowed banks to tie up with more than one insurer, from life, non-life and standalone health insurance segments, here today. Banks have been allowed by the IRDAI to sell three products each from all life, non-life and stand alone health insurance.
However, it will not be mandatory for banks to implement the same and it has been left up to them to take a call on the subject. IRDAI is likely to come up with its guidelines on bancassurance norms shortly.
“We at IRDAI have allowed banks to tie up with insurers, to sell three products each from life, non-life and standalone health insurance. However, it is not mandatory and the same has been left to banks to take a call,” IRDAI Member (Life), Nilesh Sathe told reporters here today.
He was speaking on the sidelines of an insurance summit held by Dun & Bradstreet. Clamping down on the misuse of existing provisions on claims settlement, IRDAI wants policyholders, who while renewing their policies, cannot be denied the payment of sums assured, in case of suicide, within one year of reinstatement of policy.
Existing norms say that policyholders can’t get claims if suicide is committed in very first year of commencement of policy. However, the IRDAI has said that this norm cannot be utilised in case of renewal of policy. “It has been observed that quite a few life insurers are involved in gross misuse of the norm by not giving the sum assured to the policyholder in case of reinstatement of policy after a lapse and policyholder is paid only premium refund,” Sathe said.