Banking Conclave
Mis-selling of insurance products by banks worrisome, says IRDAI Panda
This story was originally published at 14:42 IST on 19 November 2024
Register to read our real-time news.Informist, Tuesday, Nov. 19, 2024
MUMBAI – Mis-selling and force selling of insurance products by banks is worrisome, Insurance Regulatory and Development Authority of India's Chairperson Debasish Panda said at the SBI Banking and Economics Conclave 2024 on Tuesday. "When customers go to banks to buy insurance, they expect that banks should sell the right product at the right price. The banca channel (bancassurance) is a very useful channel but of late there are a lot of ills that have crept into the system. We all need to sit together and thrash them out to restore (customer) confidence," he said.
He said that the bancassurance channel should become a distribution model which is low cost, and that banks don't need to run after customers. "You have to give the option to the customers. No mis-selling, no force-selling. I believe that there is merit in this system, but it needs to be done with a lot of care and caution," he said.
On Monday, Finance Minister Nirmala Sitharaman had said that while banks have contributed to improving the insurance penetration across the country, it has raised concerns about mis-selling. "Banks will have to look at it with a lot more emphasis on their core banking activities and not burden customers with insurance which they don't require. Banks must prioritise transparency, ethical practices and clear communication strategies for us to earn the trust of the people," she said. End
Reported by Kshipra Petkar
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
