Bima Sugam: How this new portal will provide a ‘UPI moment’ for the insurance sector

livemint.com:

insurance sector. Bima Sugam aims to simplify the process of purchasing insurance for consumers. This online platform is where customers can choose a suitable scheme from multiple options given by various companies.

All insurance requirements, including those for life, health, and general insurance (including motor and travel) will be met by Bima Sugam. "This platform will help in the settlement of claims, whether it’s health coverage or death claims, in a paperless manner on the basis of policy numbers. In short, identifying the right policy, buying it, and settling the claims and renewals will be streamlined in the online process that Bima Sugam will introduce.

Insurance companies (both general and life insurers) will be major shareholders in the platform, which will offer facilities to customers via an ‘e-insurance account’ (E-IA)," said Tejinder Singh senior consultant of Alpha Capital. It will facilitate insurance companies to access the validated and authentic data from various touch points on a real-time basis. The platform will interface for the intermediaries and agents to sell policies and provide services to policyholders, among others, and reduce paperwork.

Further, the paperwork involved in buying a policy will also come down. Settlement of claims and renewal of policies will also become faster as paperwork is reduced drastically, making it easier for the customers. The scheme shall benefit consumers more than the agents, since this will affect the commissions drastically and reduce paperwork involved in processing the claims.