IRDAI issues exposure draft on Bima Sugam e-marketplace for insurance


Chairman of Insurance Regulatory and Development Authority of India Debasish Panda

Chairman of Insurance Regulatory and Development Authority of India Debasish Panda
| Photo Credit: KUNAL PATIL

Insurance regulator IRDAI has issued an exposure draft on electronic marketplace Bima Sugam or the digital public infrastructure it has mooted as a one-stop solution facilitating a range of services related to insurance policies–from purchase, sale, servicing and settlement of claims to grievance redressal.

Pitched as the UPI moment for insurance by IRDAI chairman Debasish Panda in his interactions with media, and one arm of the Bima trinity, Bima Sugam seeks to empower and protect the interest of policyholders, increase insurance penetration and enhance availability, accessibility and affordability.

A not-for-profit company, with its shareholding widely held amongst life, general and health insurers and no single entity having a controlling stake, is to be established for Bima Sugam. The revenue model will be self-sustainable and consumers will not be charged for availing the services of the marketplace. The shareholders will be required to contribute to the capital when required, the draft document said.

The Board of Life Insurance Corporation of India (LIC) at its meeting recently had given its approval for investments by the State-owned insurer in the company.

The Insurance Regulatory and Development Authority of India (IRDAI) will nominate two members to the Board of the proposed company, which will establish, facilitate, develop, operate and maintain the marketplace for providing various services to the insurance stakeholders. It will be a one-stop solution for all insurance stakeholders–customers, insurers, intermediaries or insurance intermediaries and insurance agents–to promote transparency, efficiency, collaboration across the entire insurance value chain, technological innovation in the insurance sector, to universalise and democratise insurance and to achieve the vision of Insurance for all by 2047, the regulator said. It has set a March 4 deadline by which comments/suggestions on the proposed norms could be submitted.

Insurers may facilitate availability of their insurance products for sale and provide all services related to insurance policy, including settlement of claims, grievance redressal in the marketplace on an ongoing basis, the exposure draft said.

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