Irdai Approves ‘Bima Sugam’ To Make Buying Policies, Claim-settlement Easier

The Insurance Regulatory and Development Authority of India (Irdai) has greenflagged the establishment of ‘Bima Sugam’ an online insurance marketplace for buying, selling, and servicing insurance policies as well as settling claims on 22 March 2024.

In a press statement titled, ‘Regulatory Revamp: A Paradigm Shift’ Irdai said, "The Irdai (Bima Sugam - Insurance Electronic Marketplace) Regulations, 2024, aims to establish a Digital Public Infrastructure named Bima Sugam towards universalisation and democratisation of insurance as well as empowering and safeguarding policyholders' interests and achieve the vision of Insurance for all by 2047.”

Bima Sugam functions like an e-commerce digital platform where the insurance companies can sell their insurance products. The platform will onboard all the companies that offer products related to life and non-life insurance, bringing all of them together under a single platform. All the processes like buying insurance policies, renewals of policies, claim settlement, portability, grievance redressal etc. Bima Sugam aims to facilitate an 'end-to-end' digital journey to every policyholder. Irsdai added, "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.”