ICICI Prudential Life Insurance set to incorporate Bima Sugam entity

ICICI Prudential Life Insurance, a private sector insurer, is set to incorporate a not-for-profit company for housing the Bima Sugam platform - ‘Rashtriya Bima Sugam Nigam’.

The cost of the transaction is proposed to be up to 10,000 equity shares with a face value of Rs 10 each for cash at par, aggregating to 8.33 per cent of the initial issued and subscribed share capital in the First Tranche.

“The Insurance Regulatory and Development Authority of India (IRDAI) has accorded a general approval vide letter dated October 26, 2023, under Regulation 3(d) of IRDAI (Investment) Regulations, 2016 to the insurers for investing in the company proposed to be formed under section 8 of the Companies Act, 2013, provided the insurers comply with the exposure and prudential norms specified under Regulation 9 of IRDAI (Investment) Regulations, 2016,” as told to the exchanges.

As a measure to widen the access to insurance among the people as well as strengthen the customer experience in order to achieve the objective of ‘Insurance for all by 2047’, the insurance regulator had proposed the Bima Trinity.

The Bima Trinity comprises Bima Vistaar, Bima Vahak, and Bima Sugam. Bima Vistaar will offer composite insurance policies to the customers. Bima Vahak is a women-centric distribution network for policies. Bima Sugam aims to create and operate a centralized marketplace of insurance products and services.