life Insurance Council (lIC), an industry association, has suggested that a bank should be allowed to sell products of five different insurers.
At present a bank is allowed to sell products of only one life and one non-life insurance companies as an agent. The council has recommended that a bank can tie up with at least five insurers with not more than 25 per cent share per insurer.
It will be presenting a note to IRDA for consideration soon, sources said, adding it is up to the insurance regulator to accept or reject the proposal.
IRDA is yet to come out with the final guidelines on the bancassurance. Some of the insurance companies like Tata AIA, Aviva, DlF, Bajaj and Reliance life have supported the recommendation, sources said.