Insurance: Budget removes hurdles, widens reach

Budget proposes many things to enhance insurance reach

• The KYC of banks will be sufficient to acquire insurance policies

• Banks to act as insurance brokers

• Insurance companies can set up offices in tier II and III cities without prior IRDA approval

• LIC and atleast one public sector general insurance in cities where the population is over 10,000 without prior permission of IRDA

• All towns with a population above 10,000 will have a branch of LIC and one PSU general insurance company

• Bank correspondents can sell micro finance products

• ETFs will be eligible for pension, insurance investment

• Insurance, pension companies can directly trade in debt segment