Explained: What Is Irdai's Bima Trinity Plan

The Insurance Regulatory and Development Authority of India (Irdai) is developing a ‘trinity’ plan to drive India towards the goal of ‘Insurance for All by 2047’. The goal is to make insurance simpler, more accessible, and affordable for the citizens of India with a three-pronged approach called ‘Bima Trinity’.

So, what exactly is Bima Trinity?

Working on a broader agenda that is set to streamline the digital insurance marketplace and affordable policies for policyholders, Bima Trinity consists of three components, namely, Bima Sugam, Bima Vistaar, and Bima Vahak.

Let’s look in detail at what these plans bring for policyholders;

Bima Sugam

This will be a one-stop digital marketplace that is supposed to streamline buying, managing, and claiming insurance policies.

This of it as an online shopping platform for insurance, but instead of just comparing policies, customers will be able to buy, renew, claim, and settle disputes - all in one place. According to the insurance regulatory body, this digital marketplace is expected to make insurance transactions seamless, eliminating the need for intermediaries and reducing paperwork.

“The implementation of Bima Sugam is going as planned,” Irdai stated in an official release on the 9th Bima Manthan event. It has also set up the Bima Sugam India Federation (BSIF) which will oversee the development and operation of this platform. With its incorporation complete, the next step is for insurance companies to invest in and integrate with the system.

Bima Vistaar

For anyone who finds insurance confusing - given how there are many policies covering different risks, Irdai has a plan in place. With Bima Vistaar, the regulatory body is planning to simplify the insurance policies by bundling key coverages such as life insurance, accident insurance, property protection, and hospitalisation, all into a single and affordable package.

In short, it will be a composite product covering death, personal accident, property, and surgical hospitalisation with each line of risk, co-insured between all the insurers of that corresponding line of business within an ‘omnibus co-insurance arrangement’.

When rolled out, this would be a first-of-its-kind plan in India which is expected to cater to all sections of the society, particularly those who are in the lower-income groups.

According to a report by the Bussinessline, while the final pricing has not been announced yet, industry insiders think that it could cost somewhere between Rs 1,500 to Rs 2,000 per person for a sum assured of Rs 2 lakh.

Says Irdai, “A compliant, simple, comprehensive, and customer-friendly model has now been signed off by the top brass of the industry.”

Bima Vahak

Insurance penetration is already low in India, which further fell to 3.7 per cent in 2023-24, down from 4 per cent in 2022-23. A major reason behind this could be the lack of insurance awareness in the country, particularly in rural areas.

To address this problem, Irdai is rolling to ‘Bima Vahak’ which is supposed to be a localised women-centric field force that will take insurance to the doorstep of people who need it most.

These trained professionals will do the job of educating customers and assisting them with policy selection. As per Irdai, the onboarding of Bima Vahak is set to begin in April with a phased rollout to follow soon.

Why Does This Matter?

The goal behind Bima Trinity is simple: to make insurance easier, more accessible, and transparent for all. By integrating technology, standardising products, and building a trusted distribution network, the insurance regulator is taking a major step towards its vision of ‘Insurance for All by 2047’.

As these initiatives take shape, they could transform the way Indians perceive and purchase insurance, bridging the gap between complex policies and everyday people who need protection the most.