Explain the Purpose of Bima Sugam; IRDAI | Insurance Policies (Purchase, Claim Settlement) | IRDAI approves ‘Bima Sugam’ insurance marketplace platform: All insurance related work will be done at one place, policy premium can also be compared. Achi-News

The Insurance Regulatory and Development Authority of India (IRDAI) has approved the establishment of insurance market platform ‘Bima Sugam’. Through this, an insurance infrastructure will be created where information about all insurance companies will be available on one platform.

Insurance of all categories including life, health and general will be listed in Bima Sugam. There, people will be able to compare policy premiums and view a complete range of insurance products and buy according to their needs.

Facility of renewal, claim settlement, portability will also be available.
Bima Sugam will be like an e-commerce platform, where insurance companies will be able to sell their products. In this regard, facilities will range from insurance purchase to renewal, claim settlement, portability to grievance redressal. Bima Sugam aims to provide an ‘end to end’ digital service to all policy holders.

IRDAI said this enables the marketplace to serve as a one-stop solution for all insurance stakeholders including customers, insurers, intermediaries and agents, thereby promoting transparency and efficiency in the insurance sector.

There will be no fee for using the Bima Sugam service
Earlier, IRDAI Chairman had described Bima Sugam as UPI for the insurance industry. In the draft rules published in February, Bima Sugam, formed under the Companies Act 2013, was identified as a non-profit entity where users will not have to pay fees for using the platform’s services.

Insurance policies will be cheaper
Insurance policies will become more affordable through Bima Sugam. Currently, insurance web aggregators usually charge a fixed commission for selling insurance products.

According to industry officials, since insurance companies will sell policies directly through Bima Sugam, the commission paid to middlemen is likely to come down, resulting in lower premiums for policyholders.