NEW DELHI: The proposed insurance e-marketplace will be jointly held by all life, non-life and health insurance companies, and offer free services to consumers.
The Insurance Regulatory and Development Authority of India (IRDAI) on Tuesday issued the draft framework for establishment of Bima Sugam, an insurance e-marketplace.
With Bima Sugam, the regulator is trying to replicate the ONDC (Open Network Digital Commerce). The aim is to create a digital public infrastructure to boost insurance penetration in India, and improve availability, accessibility, and affordability of insurance services.
“Bima Sugam platform shall be a one-stop solution for all insurance stakeholders vis-a-vis customers, insurers, intermediaries, and insurance agents to promote transparency, efficiency, collaboration across entire insurance value chain, technological innovation in the sector, universalise and democratise insurance and to achieve the vision of ‘Insurance for all by 2047’,”IRDAI said.
Key aspects of the proposed framework include formation of a not-for-profit company under Section 8 of the Companies Act, 2013, responsible for operating and maintaining the marketplace. The shareholding of the company will be diversified among life, general, and health insurers, ensuring no single entity holds a controlling stake.
IRDAI will nominate two members to the company’s board, which will establish a risk management panel to address various risks. Other provisions include a consent-based service architecture, and no charges for consumers availing Bima Sugam services.
The stakeholders can submit their feedback on the draft regulations by March 4 ,2024. With Bima Sugam, a government-backed insurance marketplace, the government aims to achieve insurance for all by 2047. Currently, life Insurance penetration in India at 3.2% (of GDP) and non-life penetration at about 1%.
Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, said, “It’s an encouraging move and a welcomed one for Indians, as they can get better access to life insurance products designed for their long-term life goals.”
Venkatesh Naidu, CEO, BajajCapital Insurance Broking, said, “Bima Sugam can bridge the insurance gap, empower informed choices, and pave the way for a financially secure future for millions.”