All about Bima Sugam portal, a ‘UPI moment’ for insurance sector

Source: The post is based on the article “All about Bima Sugam portal, a ‘UPI moment’ for insurance sector”  published in Hindustan Times on 21st September 2023

What is the News?

Insurance Regulatory and Development Authority of India (IRDAI) has formed a steering committee to act as the apex decision-making body for the creation of its ambitious ‘Bima Sugam’ online platform.

What is Bima Sugam?

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. 

Who will own the Bima Sugam platform?

Life insurance and general insurance companies will own a 47.5 per cent stake each, while brokers and agent bodies will own 2.5 per cent each.

What are the benefits of the Bima Sugam platform? 

The portal will provide the following benefits: 1) act as a centralized database 2) assist the insured/buyers in porting their respective policies based on coverage and pricing 3) give people a wide choice to pick and choose policies and view all their policies 4) reduce commission paid to intermediaries and 5) Settlement of claims and renewal of policies will also become faster as paperwork is reduced drastically, making it easier for the customers.