Irdai urges bankers to focus on core job, not sell insurance alone; avoid mis-selling
Insurance industry regulator Irdai's Chairman Debasis Panda on Tuesday urged bankers to focus on their core job and not pedal insurance alone. In comments that come a day after Finance Minister Nirmala Sitharaman also made similar suggestions, Panda said the bancassurance channel is very useful in deepening the reach of insurance in the country.
«There is merit in the system but we have to do it with care and caution so that you don't forget your activity and only start selling insurance. It should be incidental,» Panda said, speaking at the annual banking and economy conclave organised by SBI here.
Insurance companies definitely need low-cost distribution solutions like the ones offered by the banks, which have a massive spread across the country and cover nearly all the inhabited places, he said.
«The banca channel is a very useful channel. But of late, a lot of ills have crept into the system. We all need to sit together, thrash out that, restore that confidence,» Panda said, adding that there is "mis-selling" as well.
Sitharaman had asked bankers to focus on their core jobs and avoid mis-selling of insurance policies, pointing that many a time, this also indirectly leads to increasing the cost of borrowing for a bank customer.
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