3 Replies to “Can a bank sell more than one companies insurance?”

  1. Hi Banks don’t sell life insurance. People that are licensed to sell Life Insurance do. Once a person is licensed to sell life insurance they can become agents for multiple life insurance companies. Although, they typically have their favorite company where most of their policies will be written.


  2. Hi Manu

    In India Banks are not permitted to sell for more then one Life Insurance companies products. This is primarily to protect the interest of the customers instead of having banks run after their margins from the best bidder.

    However, gradually the banks are looking at starting their own insurance firm. Example – HSBC-Canara Bank and Union Bank have already made their own tie-ups.

    However, under the free market system the prevailing trend is bound to undergo a huge change.


  3. BANKS ACT AS A CORPORATE AGENT OF ANY INSURANCE COMPANY AND AS PER LAWS OF IRDA, NO BODY CAN TAKE A LIFE INSURANCE AGENCY OF MORE THAN ONE COMPANY. THIS IS THE REASON WHY A BANK CANNOT SELL INSURANCE OF MORE THAN ONE COMPANY. THIS RULE IS APPLCABLE ONLY IN INDIA AS IN FORIEGN COUNTRIES, BANK CAN SELL LIFE INSURANCE OF MORE THAN ONE COMPANY





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