The insurance regulator IRDAI has received applications from over 40 banks for selling policies of multiple insurers under the new norms.
It had last September allowed banks to tie up with multiple insurers under an 'open architecture'. The new regulations will be effective from April 1.
"Over 40 banks, including those have promoted own insurance subsidiaries, have shown in interest in selling policies of multiple insurers," Insurance Regulatory and Development Authority of India (IRDAI) Member-Life, Nilesh Sathe, told reporters.
Banks can sell policies of up to three insurers in each of the segments -- health, life and general. However, there was speculation on whether this will be successful, as many banks have either promoted or own substantial stakes in insurance companies and might not be keen to sell the competition's products.
Meanwhile, Sathe also said there is a need for general insurers to be have a play in the newly-launched Pradhan Mantri Fasal Bima Yojna that is going to be rolled out from April 1, and IRDAI will take up the matter with the Finance Ministry.
One of the biggest strengths of the general insurers is their sales force of over 3 lakh agents across the country, according to an industry player.
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