The Insurance Regulatory and Development Authority of India (IRDAI) is unlikely to impose immediate restrictions on the bancassurance model and if action needs to be taken, it will be on case-to-case basis, sources have told Moneycontrol.
"No immediate regulatory restrictions are planned by IRDAI or government on bancassurance model," IRDAI a source said on condition of anonymity.
The misselling in the insurance space is also happening because of customer's misunderstanding of product, sources said.
Last week, department of financial services secretary M Nagaraju said there was a need to curb insurance misselling and ensure that premiums were low so that coverage could improve .
The Centre has been nudging IRDAI to scale up inspections of insurance companies and penalise those flouting norms, particularly in the health insurance segment.
Moneycontrol reported on June 19 that IRDAI was asked to intensify its scrutiny and enforcement to ensure that insurers adhere to fair practices.
On the listing of insurance companies front, sources added that there is no mandate of public listing for insurance companies. "Listing to remain advisory-based, driven by governance and transparency goals," the source quoted above said.
Bancassurance refers to the distribution of insurance products through banks. In the bank and an insurance company partnership, the bank lender as an agent, selling the insurer's products to its customers.
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