'Bima Sugam', an insurance marketplace platform, has been approved by the Insurance Regulatory and Development Authority of India (IRDAI). This will result in the creation of an insurance infrastructure that will provide data about all insurance providers on a single platform.
All types of insurance, including as health, life, and general, will be included in Bima Sugam. There, consumers can browse the full variety of insurance products, compare policy premiums, and make purchases based on their needs.
There will also be a renewal, claim settlement, and portability option. Insurance businesses will be able to offer their goods on Bima Sugam, which functions similarly to an online marketplace. This will include services for everything from buying insurance to renewing it, settling claims, being portable, and handling complaints. All policy holders will receive 'end-to-end' digital services from Bima Sugam.
According to IRDAI, this facilitates the marketplace to act as a one-stop shop for all parties involved in the insurance industry, including as clients, brokers, insurers, and agents, fostering efficiency and openness in the market.
There aren't any costs associated with using Bima Sugam's services.
Bima Sugam was previously compared by the IRDAI Chairman to UPI for the insurance sector. Bima Sugam, established under the Companies Act of 2013, was mentioned as a non-profit organization in the February draft regulations, meaning users of the platform won't be charged for accessing its services.
The cost of insurance coverage will decrease.
Through Bima Sugam, insurance coverage will become more reasonably priced. Presently, web aggregators that sell insurance typically charge a certain commission for doing so.
Industry representatives predict that as insurance companies sell policies directly through Bima Sugam, the commission given to intermediaries would likely decrease, resulting in decreased policyholder premiums.
