Bharat Overseas Bank to market life and non-life products
7 November 2002
The city-based Bharat Overseas Bank will take advantage
of the Reserve Bank of Indias (RBI) guidelines for
banks to market life and non-life insurance products on
a referral basis.
Krishna Murthy, the chairman and CEO of Bharat Overseas
Bank, says the bank is in talks with a couple of life
and non-life insurers in this regard.
the referral system, banks will not be termed as a corporate
agent to an insurer. Instead, banks will offer space to
insurers in their premises and earn commissions for the
sales conducted in these premises. The deal is akin to
the ones done by retailers who sublet space within a store.
referral systems advantage is that bank staffers
need not undergo the regular training schedule prescribed
by the Insurance Regulatory and Development Authority
(IRDA). Further, banks can enter into referral agreements
with multiple insurers, unlike a corporate agent who can
only sell the products of just one insurer.
Prudential Life Insurance has already entered into such
a referral agreement with Bank of India.
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