India’s leading banks collectively earned ₹21,773 crore in commissions from insurance sales during FY24, reflecting the growing role of bancassurance in boosting non-interest income. However, this sharp rise has reignited concerns about mis-selling practices, especially to less-informed retail customers.
According to data, private sector giants like HDFC Bank, ICICI Bank, and SBI were among the top earners. While insurance cross-selling helps expand financial product access, regulators and consumer groups have raised red flags over aggressive sales tactics, including bundling policies with loans or withholding policy details.
The Insurance Regulatory and Development Authority of India (IRDAI) has urged banks to prioritise transparency and suitability while selling insurance. Experts warn that if mis-selling persists, it could erode consumer trust and derail efforts to deepen insurance penetration in India.
The development highlights the need for ethical sales practices, improved disclosures, and financial literacy among customers to ensure that insurance truly serves as protection—not just profit.
