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Life Insurance Council (LIC) has advocated that a bank should be allowed to sell products of five different insurance companies. It would soon send a note on this to Insurance Regulatory and Development Authority (IRDA), which is yet to come up with a guideline on bancassurance (refers to selling of insurance policies).
At present one bank can sell products of one life and one non-life insurance companies as an agent.
According to LIC’s recommendation a bank can tie up with at least five insurers with not more than 2% share per insurer. Insurance majors like Tata AIA, Aviva, Reliance Life and Bajaj have known to have supported the recommendation, sources said.