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Bancassurance Guidelines

Conditions/Guidelines for Registration of Banks as Corporate Agents (BANCASSURANCE)

1. A bank desirous of selling insurance products, shall be presented by an insurance company to be licensed as a corporate agent in accordance with section 115 of Insurance Act, 2006 (ACT 724). 

2. A bank so licensed under paragraph 1 shall sell Life Insurance products and or Non-Life Personal insurances only. Non-Life personal insurance is defined as all non-life insurance policies sold to or purchased by individuals for their own benefit as opposed to corporate entities. 

3. Products (both Life and Non-Life) which have already been approved by the Commission but which have been amended or repackaged to make it suitable for a bancassurance scheme must be submitted to the Commission for approval. 

4. A copy of the agreement between the bank and the insurance company, together with the details and the branding arrangements of the products to be sold shall be submitted to the NIC for review and approval. 

5. A bank which applies for a corporate agency licence shall have “Designated Persons” who shall have the qualification and practical training required of an individual agent to be licensed as “Sub Agents” and who shall be responsible for soliciting and procuring insurance business on behalf of the corporate agent. 

6. An applicant for a corporate agency licence, and all applicants for Sub Agency licences (Designated Persons) shall pay to the NIC, an application fee on submission of the application and a licence fee when the application is approved. 

7. The bank shall not induce or compel in any form, a prospect to buy an insurance product of its Principal. All prospects, including staff of the bank, should be allowed to decide out of their own volition, which insurance product they wish to buy and from which insurance company. 

8. A corporate agency licence and the licences of the Sub Agents (Designated Persons), issued by the NIC under paragraphs 1 and 5 will expire 12 months from the date of issue and may on application be renewed. 

9. A bank which is licensed by the NIC as a corporate agent, shall submit to the NIC at the end of every year, a report containing the number of policies sold during the year by product type and the premiums generated. The report shall be submitted within three months after the end of the financial year. 

10. Section 115 and all other provisions of the Insurance Act, 2006, Regulations, Market Conduct Rules, Code of Practice and Guidelines, which apply to Agents, shall apply to corporate agents as well. 

11. A bank cannot be the agent for its own insurances.

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