IRDAI allows banks to tie up with nine insurers

The Insurance Regulatory and Development Authority of India (IRDAI) has allowed banks to tie up with a maximum of nine insurers from three segments —life, non–life and standalone health insurers — as part of the new bancassurance guidelines.

While such a tie-up will not be mandatory on the banks and it has been left to them to take a call on the number of tie-ups, the regulator is likely to notify the new guidelines on the bancassurance norm shortly.

“We will allow a bank to tie up with nine insurers, consisting of three each from life, non–life and standalone health insurance firms. However, it is not mandatory and the same has been left on banks to take a call on the subject,” said Nilesh Sathe, IRDAI Member (life) who is also in charge of the broking channel.