BALIC becomes the first insurer to go live with Bima-ASBA facility

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Private life insurer Bajaj Allianz Life Insurance on Saturday announced that it has become the first insurer to go live with the BIMA- Application Supported by Blocked Amount facility (Bima-ASBA), the company said in its press release. 

 

This milestone aligns with the Insurance Regulatory and Development Authority of India’s (Irdai) initiative to bring operational ease, enhance policyholder convenience, ensure greater transparency, and simplify the insurance premium payment process.

 

Through Bima-ASBA, policyholders can opt for UPI’s One-Time Mandate (OTM) and authorise the blocking of a specified amount, i.e up to Rs 2 lakh, in their bank account via UPI. The amount will be debited only after the insurance company completes the underwriting process and decides to accept the proposal. 

 

If the application is not processed within a period of 14 days or the proposal is not accepted, the blocked amount is automatically released back to the customer. This initiative ensures that the policy buyer’s funds remain in their bank account and continue to gain interest till the time the policy issuance is confirmed. 

 

Bajaj Allianz Life, in partnership with its payment partners, has successfully launched this process, it said.

 

Speaking on the development, Tarun Chugh, MD & CEO, Bajaj Allianz Life, said, “The life insurance industry has been working to be more agile, simplify processes and build customer trust, and Bima-ASBA will further strengthen these efforts by adding a layer of security, confidence, and flexibility for policyholders. By allowing customers to block their premium amount instead of paying upfront, it addresses concerns about refunds if a policy isn’t issued. At Bajaj Allianz Life, our Customer First promise inspires us to innovate continuously, and Bima-ASBA aligns with this focus”.