The Insurance Regulatory and Development Authority of India (Irdai) has recently given the green light for the introduction of an online insurance marketplace named 'Bima Sugam'. This initiative is a part of Irdai's Bima Trinity program, which also includes Bima Vistaar and Bima Vahak. Bima Sugam will serve as an online platform where customers can select suitable insurance schemes from a variety of options presented by different companies, catering to all insurance needs such as life, health, and general insurance like motor and travel coverage.
One of the key features of the Bima Sugam platform is its streamlined and paperless claim settlement process that utilizes policy numbers for health coverage and death claims. Although the platform is not yet launched, Irdai Chairman Debasish Panda has likened Bima Sugam to a 'UPI-like moment in insurance', highlighting its potential to streamline processes for customers, insurers, intermediaries, and agents, thus enhancing transparency and efficiency in the insurance sector. The ultimate goal of Bima Sugam is to increase insurance penetration in India and work towards achieving the vision of "Insurance for all by 2047".
Industry experts believe that Bima Sugam has the potential to reduce insurance companies' reliance on intermediaries and encourage the direct digital sale of insurance products. Shashi Kant Dahuja, the Chief Underwriting Officer of Shriram General Insurance, has outlined various benefits that customers can expect from Bima Sugam, including enhanced convenience through mobile and desktop accessibility, time-saving by eliminating the need for in-person visits, and a simplified and accelerated claims process. Additionally, Bima Sugam aligns with regulatory objectives of improving access, affordability, and awareness around insurance, while also leveraging data integration for efficient underwriting and claim settlements.