Insurances.net
insurances.net » Liability Insurance » Irda's plan to advertise insurance products through post offices hits barrier
Auto Insurance Life Insurance Family Insurance Health Insurance Travel Insurance Mortgage Insurance Buying Insurance Accident Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Mobile Insurance Internet Insurance Pregnant Insurance Dental Insurance Children Insurance Baby Insurance Employee Insurance Liability Insurance Pet Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

Irda's plan to advertise insurance products through post offices hits barrier

Irda's plan to advertise insurance products through post offices hits barrier

Irda's plan to advertise insurance products through post offices hits barrier


Thelife insurance wing of India's postal service has objected to the insurance regulator's move to allow post offices to vend the policies of other insurers.

India Post's life insurance section says since the postal department has its own life cover schemes, it should not sell the policies of other insurers.

"We have the largest network on which otherinsurance companies want to ride," an official of the directorate of the postal life insurance (PLI) said on situation of inscrutability. "We have our own insurance scheme. Then why should we sell policies of other insurance companies and lose our advantage?"

The Insurance Regulatory and Development Authority (Irda) in October allowed each postal region of India Post to function as an insurance agent. Each such circle was allowed to sell policies of two general insurance firms, two life insurers, one agricultural insurance company and one stand-alone health insurer.

Some private insurance firms have found it difficult to expand their distribution networks. The regulator's move to have post offices act as agents would have worked in the larger interests of financial inclusion, according to Irda.

To be sure, since selling financial products is a good way to generate income, the postal department is reluctant to let go of this income-earning segment despite objections from its insurance wing.

It was India Post that had asked for such an arrangement, said an Irda official. "Earlier, they were allowed to sell policies of only one insurance company," he said, requesting anonymity. "We permitted each circle to sell policies of two life and general insurers and one health insurer."

Postal life insurance, initially meant for postal employees, was later extended to other government employees. In 1995, it was extended to rural areas.

There were more than 4.4 million postal life insurance policies and 9.9 million rural postal life insurance policies as on 31 March 2010, official data show.

Irda gave India Post a special allowance after an expert committee headed by Ajay Shah suggested effectively utilizing the postal network to further financial inclusion.

The insurance regulator wanted to leverage the reach of India Post to deepen the coverage of insurance services in the country. While the penetration level of general insurers is as low as 0.6% of the gross domestic product, incursion of life insurers is slightly above 4%.

India Post has a network of over 155,000 branches across 22 circles. More than 45% of its income comes from various financial services. As of December 2009, India Post's total revenue wasRs.2,273.69 crore.

"Selling insurance policies is a good revenue stream for the postal department. As it is, the PLI scheme does not cover all the requirements of the population," said an insurance company official, who declined to be named.

Private insurers say if the India Post experiment was successful, Irda may also authorize banks to sell policies of more than one firm.

"I think Irda has test-piloted by opening it out for India Post," said another insurance company official, requesting anonymity. "The regulator wants to see what the teething problems are and the bottlenecks before permitting an open architecture."

Source: [Livemint.com]
# 2 tadalafil 10 mg - tadalafil and cialis canadian online pharmacy tadalafil http://tadalafiltbs.com/   2021-3-12 06:30  reply
Could You Use A Low Cost Portable Office? by:Rudy Silva Yaz-yasmin Different Product Liability Lawsuits The Directors And Officers Liability Insurance Covers Contractors Liability Insurance Public Liability Claims - The Walking Disaster UK Directors and Officers Insurance 2010 | Market Research Report On Aarkstore Enterprise >liability Insurance Is A Professional's Security! Ibm Ts2340 Full Height Drive Ensures Long Term Reliability With 95p4436, Lto 4 Tape Commercial Liability Insurance Coverage And Profitable Regards International Singapore Virtual Office: Grow Your Business Globally Doctor Office Toys Helping The Child To Visit A Pediatric Clinic In The Good Mood Dahle 20614 Ec Level 3 Cross Cut Office Paper Shredder Review Top office design tips
Write post print Bupa HealthPlus Insurance
www.insurances.net guest:  register | login | search IP(3.236.214.19) Islamabad / Islamabad Processed in 0.018389 second(s), 6 queries , Gzip enabled debug code: 32 , 3499, 961,
Islamabad