SBI says ‘NO’ to sell insurance schemes of other companies

Even though IRDA has allowed banks to tie-up with three insurers from each segment of life, non-life and health to sell their products, State Bank of India has said it will only market schemes of its subsidiaries.

Even though IRDA has allowed banks to tie-up with three insurers from each segment of life, non-life and health to sell their products, State Bank of India has said it will only market schemes of its subsidiaries.

As per a notification issued by the regulator on September 15, banks are now allowed to tie-up with insurers to sell products through their branches. However, it has not been made mandatory for banks to go for such partnerships.

SBI has tied up with Insurance Australia Group (IAG) for its general insurance venture and with Cardif for life insurance business. SBI Chairperson Arundhati Bhattacharya said, "We entered into some contractual obligations with our foreign partners at the time of signing the JV agreement with them. As it is not mandatory (to sell products of other insurance firms), we are not looking at it right now."

The State-run lender currently sell schemes of its subsidiaries (SBI Life and SBI General) and this arrangement will continue, she said.