Big News: IRDAI Approves Bima Sugam

Q: The insurance platform will provide the following services to the policyholders:

1. Buy insurance policies 2. Agent portability 3. Policy portability 4. Claim settlement, etc.

Q: How Bima Sugam will Help?

1. It will help policyholders to access and monitor their policies conveniently. 2. The platform will help policyholders to make premium payments, and change contact details, and nominee details online. 3. As the policies will be in electronic form instead of physical form (paper), it will reduce the risk of theft and loss of the policy document. 4. The platform will help IRDAI regulate the industry and prevent insurance mis-selling and fraud.

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It has come to the notice that, the Insurance Regulatory and Development Authority of India (IRDAI) has provided approval for Bima Sugam. The regulator has asked insurance companies to become part of Bima Sugam by January 2023. This can be the biggest reform in the Indian Insurance Sector.

What is a Bima Sugam?

Bima Sugam will be a one-stop electronic insurance platform. It will be just like Amazon, a centralized marketplace for insurance where all insurance products of different insurance companies will be available. Insurance agents, brokers, banks, and aggregators like insurance dekho, policybazaar, etc. will sell insurance policies to the customers. Even customers can directly buy insurance policies from the platform.

On Bima Sugam, the policyholder will have an E-Bima or e-insurance account (e-IA) where he will hold all his insurance policies, be it, life, health, general- fire, motor, etc., and access them whenever and wherever he wants.

The insurance platform will provide the following services to the policyholders:

Buy insurance policies
Agent portability
Policy portability
Claim settlement, etc.

Who will be the Shareholders of Bima Sugam?

The initial capital for the platform will likely be Rs. 85 crores, which will majorly be funded by insurance companies. It is expected that the life insurance companies will hold a 30% stake in Bima Sugam and another 30% stake is likely to be held by general insurance companies.

How Bima Sugam will Help?

It will help policyholders to access and monitor their policies conveniently.
The platform will help policyholders to make premium payments, and change contact details, and nominee details online.
As the policies will be in electronic form instead of physical form (paper), it will reduce the risk of theft and loss of the policy document.
The platform will help IRDAI regulate the industry and prevent insurance mis-selling and fraud.

Also Read: All You Need to Know About E-Insurance Account

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