NEWS – Insurance Regulatory and Development Authority of India (IRDAI) has approved the setting up of Bima Sugam

HIGHLIGHTS

What is Bima Sugam?

• Bima Sugam acts as an e-commerce platform where insurance companies can showcase and sell their products, encompassing both life and non-life insurance offerings.
• It provides a comprehensive digital journey for policyholders, covering aspects such as buying insurance, renewals, claim settlements, portability, and grievance redressal.
• The platform integrates various stakeholders including customers, insurers, intermediaries, and agents, fostering transparency, efficiency, and collaboration across the insurance value chain.

Benefits for Customers

• No paperwork: Policies are issued in electronic format, eliminating the need for physical documents and simplifying the renewal and claims process.
• Single-window access: Customers can view and manage all their policies (life, health, and non-life) in one place, streamlining the insurance management process.
• Affordability: Direct selling through Bima Sugam is expected to reduce intermediary commissions, leading to potentially lower premiums for policyholders.
• Transparency and collaboration: The platform aims to make insurance more accessible and affordable, promoting transparency and collaboration throughout the insurance journey.

Anticipated Impact

• Bima Sugam is likened to a game-changer in the insurance sector, comparable to the impact of UPI in the banking sector.
• It is expected to offer a wide range of products from various insurance firms on a single platform, providing customers with more options and flexibility.
• The platform’s launch is awaited for more detailed insights into its functionalities and offerings.