The Bank of India (BOI) has informed customers that the corporate agency agreement with Star Health and Allied Insurance Co. Ltd. will end from 30 January 2026. After this date, health insurance policies sold under this arrangement will not be renewed or continued through the bank.
The bank has clarified that its role was limited to sourcing and facilitation, and the insurance contract is directly between the customer and the insurer. Customers have been advised to take an independent decision regarding renewal or continuation of their policy with Star Health.
Customers Bought Policies Trusting the Bank
However, banking and insurance experts have raised serious concerns over the development. Experts say that most customers purchased these insurance policies trusting the bank’s name and credibility, believing the bank would stand by them in the long term.
Many policyholders are bank customers who relied on bank officials’ advice, assuming that renewal, service support, and continuity would be smoothly handled through the bank itself.
Experts Question Bank’s Disclaimer
Experts are questioning the bank’s statement that it will not be liable for any loss, claim, or dispute. According to them, banks play a key role in influencing customers’ insurance decisions, especially senior citizens and salaried employees.
“Customers do not treat insurance sold by banks like a normal private agent product. They trust banks more, and that trust should come with responsibility,” said a banking expert.
Concern Over Misselling and Accountability
This development has also revived concerns around misselling of insurance products through banks. Experts argue that when banks actively promote insurance products, they cannot completely distance themselves later by calling it only a facilitation role.
Customers are now worried about:
- Renewal process after bank exit
- Service support and claim assistance
- Whether terms may change after direct dealing with the insurer
What Customers Should Do Now
Customers holding Star Health policies sourced through Bank of India are advised to:
- Contact Star Health directly for renewal and policy servicing
- Carefully review policy terms before renewal
- Keep all documents and bank communication safely
Bigger Question on Bank-Sold Insurance
Experts say this case highlights a larger issue in bank-sold insurance products, where customers trust banks but later face uncertainty when tie-ups end.
They are demanding clearer accountability norms so that customers are not left confused or vulnerable after such corporate arrangements are terminated.
