IRDA likely to allow banks to sell policies of rival insurers

The Insurance Regulatory Development Authority (IRDA) is expected to allow banks to sell policies of rival insurers in order to give more choices to the customers. IRDA is evaluating the norms that limit banks from selling policies of rival insurance companies. According to the existing norms, a bank can sell insurance products of one life and one general insurance company and only insurance brokers are allowed to sell policies of rivals. The plan may impinge on the multi-crore distribution arrangements between banks and insurers. Life insurers earn an important part of their premium through sales by a group bank. Banks are getting commissions for passing on customers to life insurers. Insurers also worried that banks would push the products of those who pay the maximum commission, after getting freedom to sell policies of multiple companies.