Policyholders'' protection regu
By Our Banking Bureau | 20 Apr 2002
This was
mentioned by Harbhajan Singh, an IRDA member till last month, at a
seminar on bancassurance, organised here by the Indian Institute
of Bankers and SBI Life. He, however, said the policyholders
protection fund might not materialise.
Singh pointed out in his speech that there were cultural
differences between bankers and insurance companies. "Banking
business is basically laidback, whereas, insurance products are
sold aggressively. My experience as a chairman of a bank is that
the bank staff are not willing to sell their own banks credit
cards, leave alone insurance products." Singh was earlier the
CMD of Punjab and Sind Bank.
IRDA chairman N Rangachary said there is basically three issues in bancassurance that of how to remunerate the bank counter staff who actually deal with the customers; whether or not all the counter staff should pass the mandatory examination for selling insurance; whether or not banks could own insurance companies. "IRDA will evolve regulations, depending on the opinion that would be gathered."