What is correct about 'bancassurance' in India? Select your answer using the code given below:
1. It is the sale of insurance policies through banks as a low-cost option of distribution.
2. In it, banks tie up with one insurance company in the life, non-life ,and health insurance spaces but only in a specified number of states.

Only 1

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Only 2

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1 and 2

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Neither 1 nor 2

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Solution

The correct option is C 1 and 2
Different banks may have tie-ups with different insurance companies in different states. It has been done for speedier distribution and more insurance in such insurance venture are capped at 85 per cent.

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Similar questions

Q. Select the proper option from the options given below and rewrite the completed sentences.

Insurable interest must exist in ________.
(a) Life insurance contract only
(b) Marine insurance contract only
(c) Every insurance contract

Q. Which of the following is example of a public corporation?
I. Life Insurance Corporation of India (LIC)
II. Employees State Insurance Corporation (ESIC)
III. Industrial Development Bank of India (IDBI)
Select the correct answer from the options given below.

Which of the following bank/banks is/are insured by the Deposit Insurance and Credit Guarantee Corporation?

Select the correct answer using the codes given below:

1 and 3 only
2 and 3 only
1, 3, and 4 only
1, 2, 3 and 4

Y Ltd. is a bank, functioning in India. It is planning to diversify into the insurance business. Lately, the Government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with a liberalisation of the economy and to make the field competitive other companies have been given licences to start the insurance business under the regulation of 'Insurance Regulatory and Development Authority'. Y Ltd. plans to recruit high-quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.

Identify how the company can supervise its employees and agents effectively? What benefits will the company derive from effective supervision?

Q. Which of the following bank/banks is/are included in the Deposit Insurance and Credit Guarantee Corporation?

Select the correct answer using the codes given below:

1 and 3 only
2 and 3 only
1, 3 and 4 only
1, 2, 3 and 4

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The correct option is C 1 and 2Different banks may have tie-ups with different insurance companies in different states. It has been done for speedier distribution and more insurance in such insurance venture are capped at 85 per cent.

The correct option is C 1 and 2
Different banks may have tie-ups with different insurance companies in different states. It has been done for speedier distribution and more insurance in such insurance venture are capped at 85 per cent.