Max Life Financial Services shares slid the most as they fell 8% to their day’s low of Rs 1,094, followed by SBI Life shares, which tumbled 6.8% to a low of Rs 1,403.20. The shares of HDFC Life fell 6% to Rs 638.80.
According to reports by CNBC-TV18, the Insurance Regulatory and Development Authority of India (IRDAI) is considering the said capping up to just 50% only.
IRDAI is reportedly concerned about the concentration of insurers’ business which is dependent on bancassurance, and is likely to have asked them to limit business generated via banks.
A day after Finance Minister Nirmala Sitharaman raised concerns about insurance mis-selling by banks, IRDAI chairperson Debasish Panda advised banks to resolve issues in bancassurance practices.
At the SBI Banking and Economic Conclave on Tuesday, Panda stressed the need for caution and care in insurance sales through bank channels.”Bank channel is a very useful channel for insurance, but of late, a lot of ills have crept into the system,” said Panda. “We all need to sit together to restore that confidence. It should become a distribution model that is low-cost.”He said that banks should not run after the customer and there should be no mis-selling.
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