Can Bima Sugam usher in a UPI moment for insurance? Key provisions explained
IRDAI has decided to set up Bima Sugam, insurance electronic marketplace, which will be a one-stop solution for all insurance stakeholders. Bima Sugam, or Digital Public Infrastructure, is set to empower and protect the interest of policyholders, to increase penetration of insurance in India. This will also enhance availability, accessibility and affordability of insurance in the country, reads the draft guidelines released by the Insurance Regulatory and Development Authority of India (IRDAI).
Bima Sugam will be a one-stop solution for all insurance stakeholders including customers, insurers, intermediaries or insurance intermediaries and insurance agents to promote transparency, efficiency, collaboration across the entire insurance value chain and technological innovation in insurance sector. It is believed that this new digital infrastructure will usher in a UPI moment for insurance sector in India. 1.
Bima Sugam will be a not-for-profit entity formed under section 8 of the Companies Act, 2013. 2. Main objective of the company will be to establish, facilitate, develop, operate and maintain the marketplace for providing various services to the insurance stakeholders.
3. The shareholding of the company will be widely held amongst life insurers, general insurers and health insurers with no single entity having controlling stake. 4.
The shareholders, as and when required, will contribute to the capital requirements of the company. ALSO READ: 'Treat AYUSH treatments on par with allopathic,' Madras HC tells IRDAI 5. The company will have well documented policies, procedures and governance arrangements for its functioning which will include operational, risk management and internal controls.
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