Bima Sugam: How this new portal will present a ‘UPI second’ for the insurance coverage sector

Insurance coverage Regulatory and Improvement Authority of India (Irdai) has arrange a committee to supervise the creation and improvement of its Bima Sugam—a web-based market that can home all firms promoting life and non-life insurance coverage on a single platform. The launch of the platform, which has already missed two deadlines, has now been rescheduled for June 2024. 

The regulator claims that the proposed portal will probably be a ‘game-changer’ and a ‘UPI second’ for the insurance coverage sector. 

What’s Bima Sugam?

Bima Sugam goals to simplify the method of buying insurance coverage for customers.  This on-line platform is the place prospects can select an acceptable scheme from a number of choices given by varied firms.  All insurance coverage necessities, together with these for all times, well being, and common insurance coverage (together with motor and journey) will probably be met by Bima Sugam. 

“This platform will assist in the settlement of claims, whether or not it’s well being protection or demise claims, in a paperless method on the idea of coverage numbers. Briefly, figuring out the correct coverage, shopping for it, and settling the claims and renewals will probably be streamlined within the on-line course of that Bima Sugam will introduce. Insurance coverage firms (each common and life insurers) will probably be main shareholders within the platform, which can supply amenities to prospects by way of an ‘e-insurance account’ (E-IA),” stated Tejinder Singh senior advisor of Alpha Capital.

Advantages of the Bima Sugam portal

It’s going to facilitate insurance coverage firms to entry the validated and genuine information from varied contact factors on a real-time foundation. The platform will interface for the intermediaries and brokers to promote insurance policies and supply providers to policyholders, amongst others, and cut back paperwork. Additional, the paperwork concerned in shopping for a coverage may even come down. Settlement of claims and renewal of insurance policies may even develop into quicker as paperwork is decreased drastically, making it simpler for the purchasers.

Who advantages from the BIma Sugam portal?

The scheme shall profit customers greater than the brokers, since this can have an effect on the commissions drastically and cut back paperwork concerned in processing the claims. 

“IRDAI’s strong platform will profit insurers, hospitals, and policyholders alike. This change will function a centralized hub for well being insurance-related actions; guaranteeing environment friendly coverage administration, fast & hassle-free processing of claims, automated fund switch for policyholders & hospitals, and decreased value per declare to the insurer,” stated Ajay Shah, Head – Distribution, Care Well being Insurance coverage.

It’s going to present end-to-end options for purchasers’ insurance coverage wants i.e., buy, service, and settlement in a seamless method. “First, you should buy insurance policies, pay premiums, and settle all claims on a single platform. You don’t have to go to the web sites of various insurers individually. Secondly, you’ll be able to select a repository to keep up all of your insurance coverage insurance policies. In case you have all of the hyperlinks saved in a single place, declare settlement will develop into simpler for nominees and beneficiaries,” stated Tejinder Singh

With this proactive measure, IRDAI appears to be like ahead to driving optimistic change within the trade. The initiative is not going to solely meet altering market calls for but additionally place India as a thought chief for insurance coverage innovation.

Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding choices.

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Up to date: 21 Sep 2023, 12:00 PM IST


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