Exploring Bima Sugam: A Potential UPI Moment In The Insurance Sector
The insurance sector, eagerly anticipating its introduction to the Unified Payments Interface (UPI), is poised to experience this advancement with the imminent launch of Bima Sugam, which translates to 'insurance made simple' in Hindi.
This highly anticipated platform, which has faced delays in its rollout, promises to serve as a comprehensive hub for insurance-related transactions for policyholders. The Insurance Regulatory and Development Authority of India (IRDAI) has established a committee to oversee the development and operation of the Bima Sugam platform.
So, what exactly is Bima Sugam? Similar to an e-commerce platform, Bima Sugam will function as an online insurance marketplace, facilitating insurers in selling their policies and allowing policyholders to purchase policies and file claims, among other services. Policyholders will be provided with an e-Bima account, akin to a demat account used for securities trading. Bima Sugam will also establish connections with UIDAI (Unique Identification Authority of India), NSDL (National Securities Depository Limited), and CSDL (Central Depository Services Limited).
The platform will cover various types of insurance, including life, health, and others like motor and travel insurance. Ownership of this industry body will be shared among stakeholders, with 47.5 per cent each allocated to life and general insurance companies, and 2.5 per cent each designated for brokers and agents.
How will Bima Sugam simplify the lives of policyholders? It will grant customers access to open an e-bima account, which they can use to purchase insurance plans (health, life, motor, or travel), file claims, and address grievances—all conveniently in one place. Additionally, policyholders won't need to retain physical copies of their policy documents for verification.
As for its launch date, Bima Sugam was initially scheduled for release in January 2023, then rescheduled for August 2023. Presently, it is slated for launch in June 2024. Earlier this year, IRDAI Chairperson Debashish Panda met with CEOs of leading insurers in Mumbai to refine the project.
In addition to Bima Sugam, another comprehensive tool on the horizon is the Health Claims Exchange, designed to simplify the process of health insurance claims for policyholders. This initiative will streamline claim filing and enable hospitals and policyholders to track claims online in real-time, promising a hassle-free experience.
