Insurance regulator IRDAI has urged banks to focus on their core work instead of just selling insurance. They made this appeal to curb the mis-selling of insurance. Finance Minister Nirmala Sitharaman also said something similar the other day.
IRDAI Chairman Debasish Panda on Tuesday urged bank officials to focus on their core work and avoid just selling insurance plans.
‘So that banks don’t start selling only insurance’
At SBI’s annual banking and economy summit, he said that insurance from banks has contributed a lot to increasing the reach of insurance in the country. He said, ‘This system has its merits, but we have to do it with caution and vigilance, so that you do not forget your activity and do not just start selling insurance.’
He said insurance companies definitely need low-cost distribution solutions from banks.
Bank channel is a very useful channel, but recently a lot of evils have crept into the system. Mis-selling is also happening. We all should sit together and think about this and restore trust.
Debasish Panda, Chairman, IRDAI
Earlier, Sitharaman had also asked bankers to focus on their core work and avoid mis-selling of insurance policies.
