The Insurance Regulatory and Development Authority of India (IRDAI) approved the electronic insurance marketplace – Bima Sugam, along with 7 other regulations, during its 125th board meeting.
The board of the insurance regulator approved the 'Bima Sugam' platform where the policyholders can compare premiums and purchase a wide array of insurance products. The platform is set to list insurance products from all life, health, and general insurance categories.
“This marketplace serves as a one stop solution for all insurance stakeholders, including customers, insurers, intermediaries, and agents, thereby, promoting transparency, efficiency, and collaboration across the entire insurance value chain,” IRDAI said in its statement.
Earlier, IRDAI chairman had referred to Bima Sugam as “UPI-like moment for the insurance industry”.
The board meeting was held on March 19, 2024 at IRDAI, Hyderabad.
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In the draft regulations released in February, Bima Sugam, formed under Companies Act, 2013, was noted as a not for profit entity where the consumers will not be charged for availing services of the platform.
The shareholding of Bima Sugam will be widely held among all the life, general and health insurers with no single entity having a controlling stake.
Bima Sugam will have two nominees from the IRDAI on its board apart from having the company’s own chairman and CEO, who will be appointed after consultation with the IRDAI.
Apart from Bima Sugam, IRDAI also approved other regulations including safeguarding of policyholders’ interests, rural and social sector responsibilities, registration, corporate governance and actuarial, finance, investment along with those regarding insurance products and operation of foreign reinsurance branches.
The regulatory changes under rural, social sector, and motor Third-Party (TP) insurance have been updated with gram panchayat being the unit of measurement for rural obligations. The scope of the social sector has been extended to cover cardholders and beneficiaries under various schemes. Meanwhile, under Motor TP insurance, the unit of measurement will be the renewal of coverage for goods and passenger-carrying vehicles, as well as tractors.
In addition, the board has approved regulations related to the registration, capital structure, transfer of shares, and amalgamation of insurers. Also, the norms on corporate governance were also approved. The norms on actuarial, finance and investment functions of insurers which is aimed at improving transparency and accuracy in assessing the insurer’s state of affairs, and safeguarding policyholders’ interests and facilitating ease of doing business within the insurance sector was also approved.
Further, the regulator has also given a nod to the regulations on insurance products which includes the surrender value norms.
Also, the IRDAI has approved the regulations proposed for the protection of policyholders’ interests and allied matters of insurers.
The board has also finalised regulations related to the registration and operations of foreign reinsurance branches.