Bima Sugam

The Insurance Regulatory and Development Authority of India (IRDAI) has unveiled draft regulations for Bima Sugam, an innovative online insurance marketplace aimed at enhancing accessibility and affordability for policyholders.

About Bima Sugam:

• Bima Sugam seeks to empower and protect the interest of policyholders, increase insurance penetration and enhance availability, accessibility and affordability.
• Part of the Bima trinity, alongside Bima Vistaar and Bima Vahak, Bima Sugam focuses on empowering and safeguarding the interests of policyholders.

Key Features and Objectives:

• Facilitates services encompassing purchase, sale, servicing, settlement of claims, and grievance redressal.
• Acts as a one-stop solution for all Insurance stakeholder’s vis-a-vis customers, insurers, intermediaries or insurance intermediaries and insurance agents.
• Customers will not have to pay any fee to access this platform.
• Aims to promote transparency, efficiency, collaboration, technological innovation, and democratization of insurance.
• Vision: “Insurance for all by 2047.”
• The platform will be formed under Section 8 of the Companies Act, 2013, and will be a not-for-profit company.

Structure and Governance:

• Company board to include two IRDAI-nominated members, a chairperson, and CEO, all subject to prior regulatory approval.
• Shareholding distributed among life, general, and health insurers, preventing a single entity from having a controlling stake.
  • Shareholders shall contribute to capital as and when required.
• Emphasis on a risk management committee within the board.

How Bima Sugam portal will be helpful?

Enhancing Data Accessibility:

• The Bima Sugam portal will empower insurance companies by providing easy access to validated and authentic data from various touchpoints in real-time.
• This ensures the availability of accurate information, enhancing the efficiency and reliability of insurance processes.

Streamlining Processes for Intermediaries and Agents:

• The platform will serve as an interface for intermediaries and agents, offering them a seamless space to sell policies and provide services to policyholders.
• By centralizing these activities, Bima Sugam aims to reduce the reliance on paperwork, fostering a more efficient and agile insurance ecosystem.

Simplified Policy Purchase Process:

• Bima Sugam seeks to streamline the process of purchasing insurance policies, leading to a significant reduction in paperwork.
• This simplification will contribute to a more user-friendly and accessible experience for customers seeking insurance coverage.

Expedited Settlement of Claims and Policy Renewals:

• One of the key benefits for customers is the expedited settlement of claims and policy renewals facilitated by Bima Sugam.
• The platform’s real-time capabilities will contribute to faster processing, ensuring a more convenient experience for policyholders.

Anticipating India’s Insurance Growth:

• India is poised to become the sixth-largest insurance market by 2032, reflecting the sector’s significant potential for expansion.
• The life insurance sector, specifically, is projected to witness a compound annual growth rate (CAGR) of 12.5%, with gross written premiums expected to reach Rs 14.5 lakh crore in 2027 from Rs 9.0 lakh crore in 2023.

About Bima Trinity:

• Bima Vistaar: Offers a singular policy covering health, life, property, and accident insurance.
• Bima Vaahaks: Bima Vaahaks initiative focuses on a women-centric workforce operating at the grassroots level.
  • It aims to educate and engage women heads of households about the comprehensive benefits of insurance.
• Bima Sugam: Positioned as a ‘one-stop destination’ for insurance-related needs.

About Insurance Regulatory and Development Authority of India (IRDAI)

• The IRDAI is a statutory body that regulates and develops the insurance industry in India.
• IRDAI was established in 2000 as an autonomous body, following the recommendations of the Malhotra Committee report in 1999.
• IRDAI’s goals include:
  • Protecting the interests of policyholders.
  • Regulating the insurance industry.
  • Overseeing and developing the insurance sector.
  • Investigating complaints from policyholders against life, non-life, and health insurance companies.

Ref: Source