Irdai issues norms to protect group policyholders of merging state banks

Moreover, Irdai has said a bank in its capacity as a group organizer may have group insurance arrangements with any number of insurance firms

The insurance regulator has come up with guidelines to protect the interests of group insurance policyholders of merging state-run banks. The regulator said upon the merger of public sector banks (PSBs), group health insurance policies of customers of the merged banks shall continue to be serviced by the insurer till the end of the policy period.

"The insurance companies shall make suitable arrangements with the acquiring banks to this effect," said the the Insurance Regulatory and Development Authority of India (Irdai)

The regulator has also said the arrangements of the merged banks can be continued with the respective insurance companies for a