What is Bima Sugam and who will benefit from it? All about it

What is Bima Sugam: The Insurance Regulatory and Development Authority of India (Irdai) has announced the launch of Bima Sugam, an online marketplace that would house all businesses advertising life and non-life insurance on a single platform. The gateway will relocate on January 1st, 2023.

The Insurance Regulatory and Development Authority of India (IRDAI) has launched Bima Sugam in an effort to digitalize the insurance industry for the benefit of policyholders. Bima Sugam, which means “clean coverage” in Arabic, is an online marketplace that provides a niche to all providers of insurance on a single platform. On January 1, 2023, the online platform, which includes both existence and non-existence coverage, is going live.

Bima Sugam can be useful for a number of policy-related operations, such as buying and selling of policies, keeping current policy information close to hand (portability centres), handling claims, and changing insurance agents. It enables customers to purchase life, auto, or health insurance policies directly. Clients may access these services using a digital insurance account (E-IA).

Bima Sugam may be a one-stop shop for all insurance needs, from purchasing the policy to reaching an agreement and much more.

The following coverage services must be allowed under the overall Insurance Platform:

• To purchase insurance
• Portability of Claim
• Portability of Agents
• Portability of Policies

This might include a Demat-formatted E-BIMA or E-IA account for policyholders. As there is no obligation for retaining and safeguarding the physical record, it will provide more protection and make it easier for the policyholder to renew their coverage without having to submit documentation.

By selecting a repository of their choosing, the policyholder and his immediate family’s coverage criteria can be preserved in this way. Because of the connections between the data stored in one place, it will make declaring an agreement for the nominee and beneficiaries easier.

The fraud may also be reduced.

All coverage needs, including those for life, health, and general coverage (including motor, travel, etc.), may be met by a single platform. There must be a few changes made inside the present structure in order to bring everyone together under one roof.

There are many identical replies for the policyholders under “BIMA Sugam” about who may have access, in accordance with improving business ease of doing business and making Life and Health available to all at a reduced price. It is accessible via the use of customers, agents, and intermediaries,

Gains from Bima Sugam

Bima Sugam will provide customers with a fantastic range of coverage options to choose from once people start using it, capitalizing on the idea of centralized records being able to be available on the platform. Lowering the amount routinely desired to be paid to the intermediaries, may even reduce the charge of guidelines falling on the client’s head. The new endeavor is also anticipated to enable new/sandbox items to become more appealing more quickly.

The discussion board will push for the ecosystem for selling insurance to be fully digitalized. The policyholders’ approval via Aadhaar verification would be necessary.

Customers may need this in order to have access to the guidelines. Policyholders who have agreed to participate in the forum receive their E-Bima or E-coverage accounts. They will be able to examine their rules and submit a claim using these. Declare agreement might be a more comfortable process for candidates and beneficiaries because all the information is kept in one place.