The chief operating officer of Royal Bank of Canada spoke out against restrictions that prevent banks from selling insurance at their branches, even while RBC’s insurance division announced consumers can now buy insurance on the Internet.

Barbara Stymiest said in a speech Monday that banking rules preventing tellers from even mentioning insurance are “bizarre”. In a speech to the Canadian Club in Montreal, Stymiest said the rules seem to be there “to defend the relationship between government and the insurance industry.”

Under the federal Bank Act, the big Canadian banks can promote insurance through the mail and the Internet, but not within their branches.

The big bank already own insurance companies.

Meanwhile, Royal said Monday its insurance division is the first of the major six chartered banks to offer policies for general property and auto on the Net.

Until now, consumers could only get quotes, explained Stan Seggie, president of the property and casualty division at RBC Insurance.

The new online offerings include personal property and auto insurance; life and travel insurance were already available online.

“RBC Insurance is directly responding to Canadian consumers looking for convenience and choice,” said Seggie, in a release. “This online channel is truly an exciting first for RBC Insurance and another demonstration of our commitment to put our clients first.”

Stymiest noted that smaller financial institutions, like Quebec’s credit union movement and Alberta-based Bank West, have no restrictions on selling insurance, and even large stores can offer insurance.