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The Life Insurance Council could not arrive at a unified stand on the issue of allowing banks to turn into insurance brokers.
“We are still in the discussion stage and I am unable to tell our view,” V. Manikam, Secretary-General, Life Insurance Council, told newspersons here on Thursday.
It may be noted that the Ministry of Finance asked the public sector banks to take up compulsory insurance brokerage from January 15, 2015 which has been kept in abeyance since then.
Rajesh Sud, Chairman of the Insurance Awareness Committee of Life Insurance Council and Chief of Max Life Insurance Company, said there were issues and all the members of the council/life insurers did not believe that compulsory brokerage was the only way forward for expanding insurance penetration.
The foreign partners for private life insurers had different agreements which were entered into on the basis of a market/regulatory scenario when banks were acting only as corporate agents but not as brokers, he added.
As a corporate agent, a bank is allowed to sell products of a single life insurance company. But as a broker it could sell multiple policies of different insurers.
The Government had formed a committee which was talking to different shareholders. The council’s view becomes vital in this context.
The Life Insurance Council is an apex industry/consultative body with representation from 24 life insurers in the country.
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