evsjv‡`k e¨vsK
cÖavb Kvh©vjq
gwZwSj, XvKv-1000 e¨vswKs cÖwewa I bxwZ wefvM
evsjv‡`k|
website: www.bb.org.bd
05 †cŠl, 1430
weAviwcwW mvKz©jvi bs-18 ZvwiL: -------------------
20 wW‡m¤^i, 2023
e¨e¯’vcbv cwiPvjK/cÖavb wbe©vnx Kg©KZ©v
evsjv‡`‡k Kvh©iZ mKj Zdwmwj e¨vsK|
wcÖq g‡nv`q,
‘e¨vsKvmy‡iÝ (Bancassurance) MvBWjvBÝÕ cÖm‡½
e¨vsKvmy‡iÝ (Bancassurance) evsjv‡`‡k Avw_©K Lv‡Zi Rb¨ GKwU bZzb aviYv| G e¨e¯’vq e¨vsK I exgv †Kv¤úvwbi g‡a¨
m¤úvw`Z Askx`vwiZ¡ (G‡RwÝ) Pzw³i AvIZvq Zdwmwj e¨vsK KZ…©K exgv †Kv¤úvwbi exgvcY¨ wecYb I weµ‡qi my‡hvM m„wó
n‡e| d‡j evsjv‡`‡k Kvh©iZ Zdwmwj e¨vsK Ges exgv †Kv¤úvwbi cvi¯úwiK mn‡hvwMZvq AwZwi³ †Kvb SzuwK MÖnY
e¨wZ‡i‡K DfqB Avq e„w×i gva¨‡g DcK…Z n‡e g‡g© cÖZ¨vkv Kiv hv‡”Q| Kvh©Zt MÖvnK‡`i One Stop Financial Service
Gi gva¨‡g †Kvb Zdwmwj e¨vsK KZ©„K e¨vswKs †mev cÖ`v‡bi cvkvcvwk exgvcY¨ wecYb I weµq Kvh©µg m¤úv`‡b mÿg
n‡e| e¨vsKvmy‡iÝ cÖeZ©‡b Avw_©K AšÍfyw© ³ (Financial Inclusion) Z¡ivwš^Z n‡e|
2| MYcÖRvZš¿x evsjv‡`k miKv‡ii Aby‡gv`bµ‡g e¨vsK †Kv¤úvwb AvBb, 1991 Gi 7(1)(j) avivi cÖ`Ë ÿgZve‡j
12 wW‡m¤^i 2023 n‡Z mKj Zdwmwj e¨vsK exgv †Kv¤úvwbi ÔK‡c©v‡iU G‡R›UÕ wn‡m‡e exgvcY¨ wecYb I weµq e¨emvq
wb‡qvwRZ n‡Z cvi‡e g‡g© evsjv‡`k e¨vsK KZ…©K GKwU cÖÁvcb Rvwi Kiv n‡q‡Q| G avivevwnKZvq, evsjv‡`k e¨vs‡Ki
c~e©vby‡gv`b MÖnYc~e©K Zdwmwj e¨vsK e¨vsKvmy‡iÝ A_©vr exgvcY¨ wecYb I weµq Kvh©µ‡gi mv‡_ hy³ n‡Z cvi‡e| Gÿ‡Y,
Zdwmwj e¨vsK¸‡jvi gva¨‡g evsjv‡`‡k e¨vsKvmy‡iÝ (Bancassurance) myPviæiƒ‡c cwiPvjbvi wbwgË ‘e¨vsKvmy‡iÝ
MvBWjvBÝÕ (evsjv I Bs‡iwR) cÖYqb Kiv n‡q‡Q|
3| e¨vsKvmy‡iÝ (Bancassurance) e¨emvq hveZxq Kvh©µg cwiPvjbvi wbwgË G MvBWjvBÝ Abymi‡Yi Rb¨ Avcbv‡`i‡K
wb‡`©kbv cÖ`vb Kiv hv‡”Q| D‡jøL¨, evsjv I Bs‡iwR cv‡Vi g‡a¨ we‡iv‡ai †ÿ‡Î evsjv cvV cÖvavb¨ cv‡e|
4| e¨vsK †Kv¤úvwb AvBb, 1991 Gi 45 avivq cÖ`Ë ÿgZve‡j G wb‡`©kbv Rvwi Kiv n‡jv|
5| G wb‡`©kbv Awej‡¤^ Kvh©Ki n‡e| Avcbv‡`i wek¦¯,Í
mshyw³: e¨vsKvmy‡iÝ MvBWjvBÝ (Bs‡iwR) (†gvnv¤§` kvnwiqvi wmwÏKx)
cwiPvjK (weAviwcwW)
†dvbt 9530252
Secretarial Activities
Banking Regulation and Policy Department
Bangladesh Bank
Bancassurance Guidelines
BANCASSURANCE GUIDELINES FOR BANKS
Bangladesh Bank (BB) is empowered, with the Gazette Notification of the Government of
Bangladesh Reference Number-BRPD(D-1)/UBPS/761/2023-10722 dated 12 December 2023
of “Sale of Insurance” as a permissible business for a bank under section 7(1)(la) of the
Banking Company Act, 1991, to allow selective banks as eligible bank to undertake
insurance business with its prior approval. Bangladesh Bank, in exercise of the powers
conferred to it in section 45 of the Bank Companies Act, 1991 issued the following
guidelines:
1) Short Title
These guidelines shall be called as the “Bancassurance Guidelines for Banks”.
2) Approval
No bank shall engage in Bancassurance, i.e., sale of insurance without getting prior
approval from the Bangladesh Bank and obtaining a corporate agent license from the
Insurance Development and Regulatory Authority (IDRA), Bangladesh.
3) Interpretations
The following terms, as used in these Guidelines, shall have the meanings indicated
below unless the context clearly indicates otherwise:
a) "Bancassurance" is an arrangement between a bank and an insurance company
which allows the bank to sell insurance company’s products to the customers of
the bank;
b) "Bancassurance Agency Agreement", is a legal agreement between a bank and
an insurance company where the bank shall act as the insurer's corporate agent
upholding the Insurance Act 2010, the Bank Companies Act 1991 and other
concerned laws and regulations are in force;
c) “Bank”, means the banks defined at Section 5 (Murdhanna Na) of the Bank
Companies Act, 1991;
d) "Insurance company" means a company registered as an "insurer" under the
Insurance Act 2010;
e) “Bangladesh Bank” means the Bangladesh Bank, established under the
Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972);
f) “Chief Bancassurance Officer” is an officer who shall be responsible for
executing the Bancassurance business including but not limited to business
growth, revenue assurance, operations, services, trainings and ensuring
profitability in line with the bank’s aspirations as well as managing
Bancassurance business strategy of the bank with possible reviews from time to
time.
g) “Bancassurance Manager” is an officer of the bank who shall be responsible
for procuring, conducting, monitoring and reporting on all sales activities in the
business territory assigned and focusing on the distribution of insurance
products across banking channel to achieve business sales targets.
1
Bancassurance Guidelines
h) "Bancassurance Officer" is an officer of the bank who shall be responsible for
soliciting and/or procuring insurance business.
i) "Insured" means a person or an organization whose interests are covered by an
insurance policy as defined in Section 2 (26) of Insurance Act, 2010;
j) “Direct Sales Model” means a specific Bancassurance distribution model where
the bank shall promote and distribute insurance plans using its staffs and
banking networks.
k) All other words and expressions used herein, even if not defined, shall indicate
the meaning prescribed in the provisions of the Bank Companies Act, 1991,
Insurance Act, 2010 and any other standards, laws and regulations are in force.
4) Eligibility Criteria for Bancassurance Business
In granting an approval for Bancassurance, the bank shall comply the following criteria:
a) the capital to risk-weighted asset ratio (CRAR) with capital conservation
buffer (CCB) shall not be less than 12.50 percent provided that the
percentage to be fixed by BB from time to time;
b) shall meet the credit rating not less than Bangladesh Bank (BB) rating grade
2 defined at the Guidelines on Risk Based Capital Adequacy [Revised
Regulatory Capital Framework for banks in line with Basel III];
c) shall meet the minimum CAMELS rating of 2 of Bangladesh Bank;
d) the level of net non-performing loans (NPL) shall not be more than 5 percent;
e) shall have positive net profit for the last three consecutive years;
f) shall have a viable Bancassurance business plan and review mechanism
which must be approved by the Board of Directors (BoD);
g) shall have a competent and suitable manpower to operate a
dedicated Bancassurance unit/wing and a declaration signed by the Managing
Director of the concerned bank in this regard;
h) common beneficial owners of bank and insurance company or related parties as
defined under section 26(ga) of the Bank Companies Act, 1991 shall not be
eligible for engaging with Bancassurance;
i) Any other document warranted /sought by BB shall have to be submitted.
5) Application Process
A bank shall submit the following documents alongside its application for getting
approval from the Bangladesh Bank:
a) An extract of the Board Resolution approving the Bancassurance business;
b) Internally developed Bancassurance Guidelines approved by the Board;
c) The Bancassurance business plan with execution process of implementation;
d) Declaration on Code of Conduct and Forms filled-up with information of bank
and insurer as per Annex-1 and Annex-2;
e) A copy of the signed Bancassurance Agency Agreement(s) between bank and
insurer vetted by the legal retainers of the bank and the insurer. The agreement
shall contain the contents furnished in Annex- 3;
f) Any other documents required by Bangladesh Bank.
2
Bancassurance Guidelines
Bangladesh Bank shall reserve the right to withhold, suspend or cancel the approval of
Bancassurance business if, in its consideration, any activities of any of the parties
involved in the process is detrimental to the depositors’ interest or against any laws and
regulations in force in the country.
6) Corporate Agent License from IDRA
a) Bank shall apply for a corporate agent license to IDRA upon receiving approval
from the Bangladesh Bank and notify Bangladesh Bank accordingly with a copy
of the license from IDRA within 15 days of the receipt of the license.
b) Bank shall comply with all the regulations of IDRA for continuation of corporate
agent license.
7) Bancassurance Agreement, Amendment, Renewal, and Termination
a) Any amendment to the Bancassurance agreement shall be subject to approval of
Bangladesh Bank;
b) Bank shall not include any exclusivity clause (entry/exit barrier) in Bancassurance
agreement, no matter what name or title it may be called, with any insurer;
c) Upon expiration, the bank shall notify Bangladesh Bank of the renewal or extension
or discontinuation of the Bancassurance agreement;
d) Bank, for termination or discontinuation of the Bancassurance agreement, shall notify
the Bangladesh Bank stating the reason(s) for the termination/discontinuation. The
bank shall also be responsible for ensuring:
i) Communication to all concerned bank staff;
ii) Terminated and expired agreement of insurance products must be removed from
the systems/catalogues of the bank.
e) Termination or discontinuation clauses of the agreements shall include:
i) To maintain continuity of service to the existing policy-holders by both parties (bank
and insurer), even if the bank's contract with the insurance company is terminated, the
concerned bank shall provide all kinds of assistance to the insured for the remaining
term of the policy holder's existing policies;
ii) The bank shall ensure that the insured can receive the amount due through the
customer's bank account at the maturity of the insurance policy;
iii) Renewal commissions continued to be paid to the bank;
iv) Any complaint of the customer shall be resolved by negotiation between the bank
and the insurer with mutual consent.
8) Code of Conduct for Banks
a) In case of renewal or amendment of the existing agreement, the bank shall inform the
Bangladesh Bank in writing within 15 days after the renewal or amendment;
b) Bank shall take approval in due course from Bangladesh Bank to make agreement
with a new insurer and shall acquire necessary approval as well from IDRA;
c) Banks shall ensure that the Bancassurance managers/ officers are adequately trained
and certified as required by IDRA;
d) Bank shall not provide any ambiguous information to any prospective clients;
e) Bank shall ensure that no other person other than the Bancassurance managers/
officers shall solicit and/or sell insurance products to the clients;
f) Bank shall provide adequate pre-sale and post-sale advice to the potential clients;
3
Bancassurance Guidelines
g) Bank shall provide required assistance and advice to the insured and nominee in
respect of the final claim, subject to proper formalities and credentials;
h) Bank shall explicitly declare that the bank shall not take any risk related to the
insurance or act as an insurer;
i) Bank shall not compel any client to take any insurance plan; and bank shall not offer
any stimulus (through additional discounts/cash backs or any types of fee/interest
waivers) to induce clients to buy insurance other than the pricing offered by the
insurer;
j) Bank shall ensure data protection and data privacy of the client.
9) Eligibility of Chief Bancassurance Officer
a) Shall have minimum Master or equivalent degree from any recognized
University/Institute in Bangladesh recognized by the University Grants
Commission of Bangladesh or from affiliated Universities at abroad;
b) Shall have a minimum 12 years of experience in banking and/or insurance;
c) Shall be within five grades below the CEO/MD of the bank;
d) Shall not have any disqualification pointed out at the Bank Company Act, 1991 or
any other laws and regulations are in force;
e) Shall possess necessary training and/or certification as required by IDRA;
f) Any other eligibility criteria prescribed by Bangladesh Bank.
10) Eligibility of Bancassurance Manager/Officer
Following are the criteria for Bancassurance Manager/Officer:
a) Shall be a graduate or comparable level certification from any recognized
university/institute at home recognized by the University Grants Commission of
Bangladesh and from affiliated Universities at abroad;
b) Shall possess necessary training and/or certification as required by IDRA;
c) Any other eligibility criteria prescribed by Bangladesh Bank.
11) Claim Processing
The settlement of claims shall be the responsibility of the insurer and shall be obliged
under the following arrangements:
a) The bank shall assist the insured person or nominee (s) as a facilitator in processing
the claim as applicable. The means of communication with the insurer for the
settlement of the claim shall be clearly stated in the Bancassurance agreement. The
bank shall provide adequate information to the claimant about the means of
communication with the insurer for submission of claim;
b) Bank, at the request of the insurer, shall provide all necessary assistance in collecting
the necessary documents and information regarding settlement of the claim;
c) The insurer shall settle the claim directly with the insured person or nominee (s),
whichever is applicable, under intimation to the bank.
4
Bancassurance Guidelines
12) Distribution Channel
Banks shall offer Bancassurance products to their customers through any of their
following distribution network using various distribution models, such as direct or
indirect distribution models:
a) Branch Network
b) Sales Network (including telesales)
c) Digital Platform
13) Customer Need Analysis
In order to offer the Bancassurance, bank shall be legally responsible for conducting
customer need analysis. Bank shall have to preserve the report for periodic submission.
The sale of insurance in combination with the sale of banking products (bundled
products) must be offered in a transparent manner with respect to the features and cost of
the insurance. The client shall decide whether they want to buy the insurance with the
banking products or not. There shall be clear disclosures which should include that:
a) The bank understands the client and his/her insurance needs and
b) The bank checks the appropriateness of the Insurance Product for the client.
14) Commission
Commission shall be determined between the insurer and the bank as per their agreement
conforming regulations set by the IDRA.
15) Clients of Bancassurance
a) Bank shall offer Bancassurance products to the customers who have account(s)/
card(s) with the bank. Bancassurance product shall not be offered to any walk-in-
customers. However, bank’s customer can purchase Bancassurance products for
his/her family, i.e., for parents, spouse and children complying KYC requirement as
prescribed by the Bangladesh Bank.
b) Bancassurance (both Life and Non Life Insurance) shall be offered to bank’s
customer using direct sales model, complying section 15(a), provided that in case of
non life insurance only motor, travel, agriculture and crop insurance products may be
sold.
c) Bancassurance group-life and group-health products shall be offered to corporate
entities using direct sales model complying KYC requirement as prescribed by the
Bangladesh Bank.
d) Notwithstanding anything contained in these guidelines, Bangladesh Bank shall
preserve the right to update the client base from time to time to update the scope of
Bancassurance.
16) Consumer Protection
Bank shall share data and documents of customers to the extent necessary for the issuance
of that particular policy to the insurer complying section 2(cha) of The Right to
5
Bancassurance Guidelines
Information Act, 2009. For the purposes of ensuring consumer protection, a bank engaged
in Bancassurance shall-
a) ensure that no customer is coerced to buy an insurance product;
b) not debit the client’s bank account for premium without prior written authorization or
consent of the client;
c) ensure the confidentiality of consumer data and information;
d) not offer different rates, benefits, terms and conditions other than those offered or
agreed by the insurer;
e) put in place an appropriate Complaint Resolution Mechanism (CRM) to ensure that
client’s complaints are properly attended.
17) Agreement between Bank and Insurance Company
A bank shall not continue agreements with more than 3 Life insurance and 3 non-life
insurance companies at the same time.
18) Annual & Periodic Disclosure
Every bank engaged in Bancassurance shall separately disclose the financials related to
Bancassurance in their annual & periodic financial statements along with appropriate
notes as per guidelines of Bangladesh Bank.
19) Service Monitoring
Risk Management Unit (RMU) of the bank shall ensure adequate control for monitoring
service levels, time to time determined by Bangladesh Bank, related to Bancassurance.
20) Administrative Sanctions
Without prejudice to the penalties and actions prescribed by the other Acts, the
Bangladesh Bank may impose one or more of the following sanctions where any of the
provisions herein are contravened:
a) Bangladesh Bank shall instruct the bank to take punitive action against the concerned
officials/staffs, if the bank fails to comply the instruction mentioned in the Guidelines;
b) Suspension/Postponement from engaging in Bancassurance;
c) Any other actions as deemed appropriate by the Bangladesh Bank.
21) Power to Amend Regulations
Bangladesh Bank may, in consultation with IDRA, modify, change or amend these
Bancassurance guidelines as it deems necessary. Bangladesh Bank shall issue
explanations or circulars/circular letters or guidelines on certain aspects of the guidelines.
