Strengthening Trust: Combating Mis-Selling in India's Insurance Sector

Financial Services Secretary M Nagaraju stressed the critical need for banks to prevent the mis-selling of insurance products, highlighting the significance of affordable premiums to boost market penetration. This was discussed at an event announcing strategic alliances between the Central Bank of India and Italy's Generali Group.

Nagaraju pointed out that mis-selling often results in inflated premiums, deterring policyholders from renewing. He urged insurance companies to maintain reasonable premiums and uphold commitments in policies to sustain customer trust. Fair and timely processing of claims was also underscored as crucial to customer satisfaction.

Central Bank of India MD & CEO M V Rao assured that the bank does not incentivize field staff for selling insurance, thus minimizing mis-selling instances. The bank has acquired stakes in Future Generali India Insurance and Life Insurance companies, marking a strategic step to bolster its insurance presence and contribute to the 'Insurance for All' mission by 2047.

(With inputs from agencies.)