Posts Tagged ‘insurance company’

IRDA Allows Banks to Sell Insurance Products of Multiple Companies

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The Insurance Regulatory & Development Authority (IRDA) is likely to permit banks to sell insurance products of more than one company.

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The move will allow banks to retail insurance products and not just be distributor for one insurer.

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A panel, set up by the IRDA to look into bancassurance, is finalizing its report, an IRDA official said.

From 2002, IRDA had allowed bancassurance.

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A bank was allowed to act as an agent for only one life and one general insurer according to the norms.

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Bancassurance is a delivery channel in which an insurance company uses a bank”s sales channel to sell its products.

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At present, bancassurance garners more than a quarter of the entire premium collected by the insurance industry.

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Combining scheduled commercial banks, co-operative banks and regional rural development banks, India has close to 1,70,000 bank branches.

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IRDA has been concerned about tie-ups between banks and insurance companies and is considering a regulatory framework for an open architecture for such arrangements

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Insurers Ought to Maintain Records for 10 Years: IRDA

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Insurers need to keep records of cash transaction reports (CTRs) and Suspicious Transaction Reports (STRs) for a period of 10 years.

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Consequently, money laundering through insurance may be tougher from now.

In view of the Amendment to the Prevention of Money Laundering Act, 2002 which came into force on June 1, the CTRs and STRs should be maintained for a period of 10 years from the date of the transaction between the clients and the insurance company, Mr C. R. Muralidharan, Member, Insurance Regulatory and Development Authority (IRDA), said in a circular.

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The amendments to the Act were aimed to support the legal framework for anti-money laundering and combating the financing of terror (AML/CFT).

The list of offences in Part A (offences without threshold value) of the Schedule to the Act and Part B (offences with threshold value) has been significantly expanded.

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There would be no further change in Anti-Money Laundering guidelines of IRDA.

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