Section 3: Meaning of "bancassurance"

(1) Subject to subsection (3), bancassurance is an arrangement between a financial institution and an insurer or HMO under which the financial institution distributes to its customers, through its distribution channels, an insurance product of the insurer or HMO. (2) Without limiting the general effect of subsection (1), bancassurance includes an arrangement under which- (a) a financial institution acts as an agent for the insurer or HMO; or (b) a financial institution enters into a group or master insurance contract, as policy holder, with the intention that the customers of the financial institution, or a class of them, obtain insurance cover under the contract. (3) An insurance contract entered into by a financial institution as a policyholder where the sole purpose of the policy is to provide benefits to employees of the financial institution, whether or not the employees are required to contribute towards the cost of the contract shall not be taken as bancassurance. (4) For purposes of bancassurance, "Financial Institution" means a company classified as a Bank under the Second Schedule to the Financial Institutions Act 2004 and licensed as a bank by the Central Bank and includes a commercial bank, merchant bank, mortgage bank and post office savings bank; or a company licensed by the Central Bank as a Micro Finance Deposit-Taking under the Micro Finance Deposit-Taking Institutions Act, 2003.