kolkata insurance companies promoted by banks have unanimously lobbied against the insurance regulators suggestion barring them from parking fixed deposits fds and certificate of deposits cds with promoter banks at present insurers are allowed to invest a maximum 5 per cent of their investible funds with promoter banks and the industry captains have urged the insurance regulatory development authority irda to maintain status quo the insurance industry which is trying to come out of a long period of sluggishness isnt too happy with the proposals which are likely to make things tough for them there should not be any such curbs bank deposits are highly liquid and this is important for fund management universal sompo general insurance company executive chairman on sigh told et at least irda should not prevent us from depositing money in nationalised banks he said the proposal if it becomes a rule would stop universal sompo from depositing funds in allahabad bank indian overseas bank or karnataka bank its promoters if we comply with all the other investment rules why should we not be allowed to invest in parent banks singh wondered irda has also suggested that life insurance companies should limit their fixed income investments in other banks at 3 per cent while nonlife players can go up to 10 per cent the proposals are unjustified said arvind shahi chief risk officer at idbi federal life insurance company he said that the company maintains a current account with its parent idbi bank adding that it will be impractical to keep fixed deposits with any other bank no investment in deposits including fds and cds in financial institutions falling under the promoter group shall be made irda said in the draft on investment regulations circulated among insurers in july investment in fds shall not exceed 3 per cent of the respective fund size life fund pension general annuity fund and unitlinked funds in the case of life insurers and 10 per cent of investment assets in the case of general insurer health insurer it said