The IRDAI has issued guidelines to protect the interests of customers of merging public sector banks who are also group insurance policyholders, reports The Economic Times.
Consequent to the merger of few PSBs, in order to protect the interests of the group insurance policyholders of the merged banks, the IRDAI has issued certain guidelines.
Kapil Mehta, SecureNow.in said, "These guidelines essentially protect the interests of bank customers that fall under the group health schemes. They will continue to get insurance benefits until the insurance policy end date. After that the bank has several choices to provide health insurance to customers. So, these guidelines are good for customers."
The guidelines issued by IRDAI are as follows:
1. Upon merger of these PSBs, the underlying group health Insurance policies of the customers of the merged banks shall continue to be serviced by the respective insurance companies which issued the policies till the end of policy period. The insurance companies shall make suitable arrangements with the acquiring banks to this effect.
2. A bank in its capacity as a group organizer may have group insurance arrangements with any number of insurance companies for the insurance needs of its customers.
3. At the end of the current policy period of the group insurance policy of the merged bank, the acquiring bank at its option may continue with the same group insurance policy with the same insurance company, for the customers of the merged bank.
4. The acquiring bank may simultaneously continue to have insurance coverage for its existing customers with its existing insurance company. The acquiring bank can also offer this insurance coverage to the customers of the merged bank with the consent of its insurer.
5. Notwithstanding the provisions of Regulation 3 of IRDAI (Registration of Corporate Agents) Regulations, 2015 the arrangements of the merged banks can be continued with the respective insurance companies for a period of twelve months from the date of merger, subject to willingness of the acquiring bank to function as the corporate agent for the respective insurance companies.