Bancassurance: Seamless Insurance through Trusted Banking Partners
Bancassurance is a collaborative model where banks distribute insurance products alongside their financial services to their customers. Bancassurance generally means selling insurance products under the same roof of a bank. It is a complete and combined financial solution for an individual. The bancassurance channel can be digital or direct.
The Insurance Development and Regulatory Authority (IDRA) issued a circular outlining the appointment of corporate agents by commercial banks for partnering with insurance companies. Under the guideline titled ‘Corporate Agent (Bancassurance) Guideline – 2023’ allows banks to directly sell insurance products to their customers. Banks can sell the following non-life products:
Under Corporate Agent (Bancassurance) Guidelines 2023 the Insurance Development and Regulatory Authority (IDRA) issued License to The Premier Bank PLC and The Midland Bank PLC to operate Bancassurance Business with Pragati Insurance Limited. This License is only applicable to conduct Bancassurance business/marketing of specific insurance products under prescribed terms and conditions.
Process of Policy Sold Under Bancassurance
A customer will fill up the insurance proposal form and pay the appropriate premium (as per tariff/ quotation) to the Bank serving as Corporate Agent. The Bank will provide Money Receipt to the customers. If the insurance company accepts the proposal, the customer will get the final receipt and insurance documents. If the insurance company declines the proposal, it will notify its corporate agent, and the Bank will have to refund the customer within seven business days for non-life policies.
Premium Collection:
According to the Bancassurance guidelines a Corporate Agent will collect premiums and deposit into a designated account belonging to the Insurance Company.
Claim Processing:
- The bank shall assist the insured person or nominee (s) as a facilitator in processing the claim as applicable. The means of communication with the insurer for the settlement of the claim shall be clearly stated in the Bancassurance agreement. The bank shall provide adequate information to the claimant about the means of communication with the insurer for submission of claim
- Bank, at the request of the insurer, shall provide all necessary assistance in collecting the necessary documents and information regarding settlement of the claim
- The insurer shall settle the claim directly with the insured person or nominee (s), whichever is applicable, under intimation to the bank.
Why Choose Bancassurance?
- Convenience: Get insurance and banking services in one place.
- Trust: Purchase coverage through customers preferred banks—an institution you already know and trust.
- Speed & Simplicity: Faster processing and seamless integration with customer’s financial activities.
Why Choose Bancassurance?
- Convenience: Get insurance and banking services in one place.
- Trust: Purchase coverage through customers preferred banks—an institution you already know and trust.
- Speed & Simplicity: Faster processing and seamless integration with customer’s financial activities.
Bancasssurance with Midland Bank
Pragati Insurance Limited has made an agreement with Midland Bank PLC for Bancassurance business for next 3(three) years with effect from 16th May, 2024 to 16th May, 2027
Bancassurance with Premier Bank
Pragati Insurance Limited has made an agreement with The Premier Bank PLC for Bancassurance business for next 3(three) years with effect from 4th April, 2024 to 3rd April, 2027.
