Bima Sugam, a much-anticipated digital insurance marketplace, is taking shape with investments coming in from insurers. As per a recent report on Rediff.com, two companies, namely, New India Assurance and Niva Bupa Health Insurance, have now publicly announced plans to invest in this platform.
The platform will act as a one-stop solution for policy buyers to access all the products of all the insurance companies in one place. However, there is still little information regarding the details of how much and how many insurers are committing to investments in this platform.
But what exactly is ‘Bima Sugam’ and how does it stand to benefit policyholders? Let’s understand in detail:
Bima Sugam is Irdai’s step towards building a digital infrastructure that caters to the needs of Indian insurance buyers. The idea behind this platform is simple: it intends to create a first-of-its-kind, ‘one-stop digital insurance marketplace’. From life to health, to general insurance - the customers will be able to compare, buy, and manage their insurance policies on this platform.
It is further expected to streamline the insurance experience not only for policyholders but industry stakeholders as well. The platform aims to promote transparency, efficiency and accessibility while working towards a seamless claim process.
Irdai has positioned ‘Bima Sugam’ as a game-changer that will help India achieve the vision of ‘Insurance for all by 2047’.
How Will It Benefit Policyholders?
For customers, this portal will be a game-changer in the following ways:
Convenience and Accessibility: Before buying a policy, customers typically have to compare plans of different insurers with the help of some aggregator platforms functioning in India. Bima Sugam also brings forth a similar model where, rather than dealing with multiple insurer sites or depending on broker websites, policyholders will get direct access to all their insurance needs on one platform.
Whether to purchase a new policy, compare plans, renew their covers or make claims, this platform is expected to make it all convenient by putting these options in one place.
Quicker Claims Settlement: A big pain point for policyholders is typically the period of ‘claim processing’. However, with a centralised system, claims requests could be monitored and settled quicker, eliminating delays and bureaucratic red tape. That’s the broader idea of Bima Sugam which intends to bring a smooth claim processing for policyholders.
Price Transparency and Comparison: Customers would be able to compare policies across different insurers side by side, so they can obtain the best coverage for their needs without surprise charges or complicated terms.
No Additional Charges: The Irdai has indicated that customers will not be charged for availing the services of Bima Sugam, and it will be an economical method of policy management.
Security and Data Protection: The website will be on a consent-based model, i.e., the policyholders will have the power to decide how their data is to be used and shared, thereby minimising the possibility of misuse.
The Investment Debate
Despite such promising features, Bima Sugam still has some more clarity to offer. This is particularly regarding the funding structure of this platform. The report on Rediff.com has noted concerns regarding insurers being directed to invest in a private limited company (Bima Sugam) - something that appears to go against the Insurance Act.
The report further cites Irdai officials and legal experts who have questioned the legality of insurers investing in a private entity, questioning if regulatory mandates can override the law. It has further questioned the platform’s revenue model, governance structure and long-term sustainability.
