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IRDAI chairman Debashish Panda had earlier said that this would be a UPI-like moment for Insurance Industry.
In an official statement titled “Regulatory Revamp: A Paradigm Shift” released on March 22, 2024, the regulator said, “The IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, aims to establish a Digital Public Infrastructure named Bima-Sugam towards universalization and democratization of insurance. This initiative is geared towards expanding access to insurance services, protecting policyholders’ rights, and working towards the goal of ‘Insurance for all by 2047’, ensuring inclusivity and security within the insurance sector.
What is Bima-Sugam?
Soon-to-be launched ‘Bima-Sugam’ functions will be an online marketplace tailored for insurance providers to showcase their offerings via a single portal. This platform aggregates a diverse range of life and non-life insurance options from various companies, streamlining the entire insurance process for consumers. Its services encompass policy purchases, renewals, claims processing, policy portability, and customer grievance resolution, ensuring a seamless digital experience for policyholders. According to statements by IRDAI, Bima Sugam represents a unified hub benefitting all entities involved in insurance, fostering transparency, operational efficiency, and cooperation throughout the insurance ecosystem.
Will this affect existing online insurance distributors?
Apart from facilitating insurance transactions, the platform enables insurance firms to integrate seamlessly via APIs for claims processing. Its intent is not to displace online distributors but rather to include them in its ecosystem. According to a statement by Irdai, the marketplace caters to all participants in the insurance sector—customers, insurers, intermediaries, and agents—promoting transparency, efficiency, and collaboration throughout the insurance value chain.
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How is Bima Sugam going to help the customers?
Bima Sugam is all set to make your insurance journey easier, simpler, and more affordable.
1. Paperless Convenience:
Bima Sugam is all set to make your life insurance journey easier, simpler, and more affordable. With Bima Sugam, there will be no more paperwork hassles as policies will be available in electronic format. This eliminates the need for filling out lengthy forms and storing physical documents, making policy management seamless.
2. Centralized Policy Management:
Experience easier access to insurance policies through a single window with Bima Sugam. You won’t need to keep track of different policies separately anymore. Whether it’s life, health, or non-life insurance, you can view all your policies in one application or window under Bima Sugam. Check policy details, renewal dates, and raise service requests conveniently from one unified portal.
3. Affordability Redefined:
Bima Sugam is set to make insurance policies more affordable. Unlike traditional channels that charge fixed commissions, Bima Sugam’s direct approach reduces intermediary costs, leading to lower premiums for policyholders. Take advantage of discounts on premium rates when purchasing policies directly through the platform, making insurance accessible and budget-friendly for everyone.
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