Bank Insurance Brokers Qualification 2013

Bank Insurance Brokers Qualification 2013 , Insurance Regulatery Development Authority

IRDA (Insurance Regulatery Development Authority )allows banks to act as insurance brokers

Insurance regulator Irda Insurance Regulatery D evelopment Authority has allowed banks to act as brokers and sell products of more than one insurer so as to increase the penetration of the sector across the country.

While RBI approval is required for banks to become brokers, Irda is of the opinion that any in case of any dispute arising out of insurance transactions, its jurisdiction should prevail. It added that the laws applicable to insurance contracts shall be enforced and information in this regard shall be furnished to the RBI.

RULES-

There is no capital requirement for insurance broking business carried out by banks, according to Irda .

The licence, once issued, will be valid for three years from the date of issue, it said, adding that the renewal of licence can be applied 30 days before expiry of licence.

Every insurance broker will, before the commencement of the business, deposit and keep deposits with any scheduled bank as sum of Rs 50 lakh

Not more than 25 per cent of insurance handled by the insurance broker in any financial year is placed with the insurance company within the promoter group, separately for life and general insurance business