bankassurance

in asian context ,bancassurance is at nascent stage and  there enormous  potential lies for banks to cash on b'coz in india banker is seen as financial advisor .there is around retail account base of 450  mn and deposit account of around 300 bn USD which shows that banking institutions are highly trusted in india and bankers are exploiting customer in awake of this faith.such model ,should be regulated so as to avoid a choatic situation lies ahead if it keep growing at the present pace .employees forcefully (by this i mean setting up steep targets to achieve  ) are made to sell policies and  aren't properly trained to do so either.IRDA should definately look into the matter and bring in the necessary regulatory framework to curb unfair practices and protect public interest.

Bancassurance in India has got many flaws.

1. In majority cases, insurance is sold as obligation, particularly by PSU banks. It should be widely campaigned by RBI & IRDA that any customer who is forced for taking insurance policy by the banks can complain, and the authorities should ensure the interests of banking customers.

2. The aggressive/ambitious targets set in by the private banks to their frontline staff (in many cases, these employees are not even on the roles of the bank) is leading to misselling.

3. The greed for fee based income will in the long run spoil the image & equity of the banks. So, banks themselves hould have self regulating mechanisms.

So, it is the responsibility of IRDA, RBI and the Banks to ensure that unethical practices sre stopped. 

Rightly said bank started selling all the products ,except their banking products.. They feel banking is mere service only. Every banker today selling from gold to insuance. Most of the banks misleading their customer for taking insurance.This is a recent happening ( a lady want to renew the Fd to one of a leading pvt sector bank branch, one of a relationship executive mis lead the customer ( says the bank has a bond which yield higher return of 10%) and convinced her and manage to get her signature and after a weeks time, the customer received a policy documents inastead of bond certificate. Immidiately her husband contacted the sales person he told that the bond certificate paper is not avilable it is underprinting, hence we sent the paper. Then they enquired about the products with the insurance company concerned , then they explained this is insurance policy there is no quaranteed return , she should pay the premium for ten years. The lady confused and she is not able to pay regular premium for 10 years. ( she is 60yrs) she went and explained with the branch manager of the bank and finaly bank manager aggreed to cancel the policy and issue the FD Receipt. Fortunately the policy is within the free look period of 15days other wise what will be fate of poor lady. Why this is happening wrong selling ? every one thing insurance selling is a revenue oriented. This is suitable for only individual agent. If a insurance agency run with paid employees , the employer and employees will look only revenue part. They wont give importance for keeping the customer happy or good for the customer. Hence Irda should relook the corporate banking channel selling insurance. They should encourge and train the individual agency force to accquire more happy customer and retain. Corporate and bank are selling insurance only for money sake 

rbi/irda should see all this as it is against law n unethical too