The Insurance Regulatory and Development Authority of India (IRDAI) has revived its roadmap to launch Bima Sugam, an insurance platform that will be responsible for the sale, servicing, and claims of insurance policies. According to sources, the IRDAI Chairman has held meetings with CEOs of Life and General Insurance companies to discuss the revived roadmap for Bima Sugam.
As per sources, the insurance regulator is expected to soon release Request for Proposals (RFPs) for the appointment of service providers for Bima Sugam. Services providers would be responsible to put the Amazon-like platform together for sale, servicing and settling claims for insurance policies. Sources also tell CNBC-TV18 that Bima Sugam is expected to raise Rs 100 crore which will be raised through insurance companies, service providers, insurance aggregators and agent body.
As per the equity sharing structure, all life insurance companies will own a 45 percent stake in Bima Sugam on an equitable basis, while all general and standalone health insurance companies will also own a 45 percent stake. The remaining 10 percent stake will be owned by service providers, insurance aggregators, and the agent body.
As per sources suggestions were also shared on how Bima Sugam would raise funds for its operational expenses. The platform could charge a fee to insurance companies on every transaction which may include sale, renewal, claim from insurance policies. Not just that, a fee could also be charged for enquiries.
Sources also add that the implementation of Bima Sugam could happen where in the first phase the platform could be used as a data bank for insurance companies and intermediaries. In the second phase, basic or standard products could be listed and eventually all products will be available on Bima Sugam.
The launch of Bima Sugam is expected to bring significant changes in the insurance industry, as it will provide a single platform for sale, servicing and claims from insurance policies. Bima Sugam will also streamline insurance buying process for customers and promote transparency and accountability in the insurance sector.