Insurance cos knock on Irdai door seeking more time to implement Bima-ASBA

Insurers seek Irdai's nod for more time to implement Bima-ASBA, citing early deadline; feature allows policyholders to block premiums until underwriting is completed

Insurance companies have approached the Insurance Regulatory and Development Authority of India (Irdai) and sought an extension in implementing its new payment mechanism Bima-ASBA (Applications Supported by Blocked Amount), which aims to simplify and streamline the payment process for health and life insurance policies, said multiple sources aware of the development.

 

In mid-February, Irdai introduced the Bima–ASBA facility and mandated insurers to offer this facility, which will enhance convenience and reduce payment-related delays, to the policyholders by March 1. A majority of insurers have yet to go live with this feature.

 

The companies have initiated discussions with the UPI facility