Bima Sugam Insurance Portal is a “one-stop solution” for all insurance stakeholders, including customers, insurers, intermediaries, and agents, proposed by the Insurance Regulatory and Development Authority of India (Irdai) in a February 13, 2024 draft regulation.

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The portal aims to promote transparency, efficiency, collaboration across the insurance value chain, technological innovation, universalize and democratize insurance, and achieve the vision of “Insurance for all by 2047”, according to IRDAI, which first floated the idea in 2022.

The draft “Bima Sugam Insurance Electronic Marketplace Regulations 2024” comes after IRDAI’s talks with life and general insurers. IRDAI has sought public comments by March 4.

Here are some key points of the draft regulations:

• Bima Sugam will be formed as a not-for-profit under section 8 of the Companies Act, 2013.
• The company’s main objective will be to establish, facilitate, develop, operate, and maintain the single platform marketplace for providing insurance-related services to the stakeholders.
• The company will not have a single-entity controlling stake. The life, general, and health insurers will hold the shareholding.
• As and when there is a capital requirement, shareholders will contribute towards it.
• The company will have well-documented policies, procedures, operational risk management, and internal control arrangements for proper functioning. It will have two Irdai nominees on its board.
• The board will ensure the system’s operational reliability, security, and scalable capacity. Further, it will ensure functioning is according to the regulations, the interests of the insurers are legitimate, and will have a business continuity plan in case of disruptions.
• The board’s risk management committee will ensure operational and risk management policies, procedures, and systems so the company can ‘identify, measure, monitor, manage and mitigate various risks’ and review them periodically.
• The digital marketplace will provide an ‘end-to-end digital solution’ to the insurance stakeholders and the market. It will use consent-based architecture for services and will not store, hold, or maintain any data.
• Insurers will provide facilities such as sales and related services, settlement of claims, and grievance redressal on an ongoing basis.
• The company board will have a self-sustainable revenue model and will not charge consumers for the services.

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How Can It Help Senior Citizens?

Senior citizens currently contact or follow up with different insurance companies for information separately via their portals, making it challenging for them. However, this platform aims to streamline this process by providing comprehensive details in one place, encouraging more people to avail of insurance services.

Ease Of Use: Bima Sugam Insurance Portal is a one-stop solution. Seniors, especially those less tech-savvy, will find it user-friendly.

End-To-End Solution: Senior citizens can benefit from it for their insurance needs with just one click from the comfort of their homes. They would not need to visit the branches or intermediaries to get things done.

Transparent And Faster: Access to information from all insurers in one place promotes transparency and expedites processes, including comparing, checking, tracking, and settling claims.

Security And Privacy: The draft regulations prioritize security and privacy, assuring users that no information is stored or maintained, reducing the risk of data breaches.

No Charges: The absence of charges for availing of the services on the platform will encourage seniors and others to seek information, services, and assistance and raise grievances.

The draft says, “Bima Sugam – Insurance Electronic Marketplace” as a digital public infrastructure will protect and empower policyholders’ interests, increase insurance penetration in India, and enhance availability, affordability, and accessibility.”

As per IRDAI’s latest data, India’s insurance penetration in terms of premiums to GDP, both life and general insurance combined, was just 4 per cent in 2022, less than the global average of 6.8 per cent.