IRDAI allows Banks to tie up with insurers

The Insurance Regulatory and Development Authority of India (IRDAI) has allowed banks to tie up with a maximum of nine insurers from three segments —life, non–life and standalone health insurers — as part of the new bancassurance guidelines. While such a tie-up will not be mandatory on the banks and it has been left to them to take a call on the number of tie-ups. IRDAI is likely notify the new guidelines on the bancassurance norm shortly.

  • IRDAI is an autonomous apex statutory body which regulates and develops the insurance industry in India.
  • It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999.
  • The agency operates from its headquarters at Hyderabad, Telangana where it shifted from Delhi in 2001.
  • IRDAI has one Chairman, five whole time members and four part time members.
  • TS Vijayan is the current Chairman of IRDAI.
Test Your Knowledge

What is the FDI limit in insurance sector?

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Answer – FDI Limit was raised to 49% in July 2014. 

What is the Largest General Insurance Company in India?

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Answer – New India Assurance. It was founded by Sir Dorabji Tata in 1919, and was nationalised in 1973.

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