Insurance Regulatory and Development Authority’s (IRDA), in October last year, allowed each circle if department of post (DOP) to act as a corporate agent to sell insurance. India post’s life insurance wing however, is not happy to sell insurance products of other insurance companies as they have their own life cover schemes.
IRDA, in October permitted each circle of India Post to act as a separate unit. Each circle could tie-up with 2 life insurance and 2 non-life insurance companies, 1 health insurance and 1 agricultural insurance company.
An official from the postal life insurance department said that they have their own insurance scheme and the largest network and there is no reason why they should be selling policies of any other insurance company.
For nearly a century and half the Indian Postal System has been the main component of the communication infrastructure for the country. They have a huge database and a wide network.
According to IRDA, some private insurance companies have difficulties in expanding their distribution networks and the move to include DOP would have worked in the larger interests of India’s financial inclusion objective of the government.
Private insurance companies have been looking forward to selling their policies through India Post. Discussions are still underway and insurance companies are still hopeful that a deal may work out.
Source: myinsuranceclub.com, March 1, 2011
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