Reporters from CNBC TV had reported that the approval to the release of guidelines of Bancassurance has been delayed by IRDA because it has several problems and challenges that have to be modified as IRDA has to regulate the whole insurance industry.

Bancassurance is the output of the plan called Bank Insurance model (BIM) that permits the banks to join hands with two of the insurance companies, one from life insurance sector and other from general (non-life) insurance sector, to enhance their business mutually.

Though the insurance industry had been bifurcated on this plan as the view of one group of insurance companies, according to Sanjiv Bajaj, MD of Bajaj Capital, is that the institutions already in a link with other institutions as per bancasurance plan may not be interested in dismissing that on the assurance from other banks but the institutions that have weak links with other institution may get benefitted to a great extent.

But IRDA predicts the whole matter on the basis of execution of the plans under the system. The main points to be considered by IRDA in this connection are the training of staff, certifying them and issuance of licenses for taking business under these plans. The fear of mal-practicing in the sales of products is also to be controlled.

On the other hand banks, as intermediators, may have rift over interests than the mutual products to be sold. According to IRDA insurance companies may get overwhelming business through bancassurance due to better assurance and market of banks associated with them.

SB Mathur, the secretary general of Life Insurance Council, is of the view that they were assured to get better business with banks as people rely upon them so they should not waste the time.

On the other hand, IRDA is sure to announce the rules of bancassurane when the interests of the consumers get assured.

The editorial team from finance site and tombstones producer Financial Tombstones have been covering this story on their site.