September 2023

The Bima Sugam platform, initially slated for a January 2023 and then an August 2023 launch, is facing its third postponement. A new launch date has been set for June 2024, according to a recent report by Asia Insurance Post. Live TV The Insurance Regulatory and Development Authority of India (IRDAI) has initiated crucial processes to pave the way for Bima Sugam’s eventual launch, the report said. A Request for Proposal (RFP) has been issued to appoint a project consultant, marking a significant milestone in the project’s development. The regulator has also established a committee, which will serve as the supreme decision-making body overseeing the creation and operation of the Bima Sugam platform, as outlined in the report. The committee comprises prominent figures from the industry including Rakesh Joshi, the Finance and Investment member of IRDAI; Anup Bagchi, the MD & CEO of ICICI Prudential Life Insurance; Naveen Tahilyani, the MD & CEO of Tata AIA Life Insurance; Mahesh Balasubramanian, the MD & CEO of Kotak Life Insurance; Nilesh Garg, the MD & CEO of Tata AIG General Insurance; Prasun Sikdar, the MD & CEO of Manipal Cigna Health Insurance; Inderjeet Singh, the Secretary General of the General Insurance Council; and Satyendra Nath Bhattacharya, the Secretary General of the Life Insurance Council. To navigate the intricate legal aspects of the project, the IRDAI has enlisted the services of Cyril Amarchand Mangaldas (CAM) as its legal counsel. CAM’s responsibilities include the incorporation of a Section 8 not-for-profit company, which will serve as the entity owning the Bima Sugam platform, the report said. Bima Sugam is poised to become a one-stop insurance platform that lists all life and general insurance policies. Experts predict that this platform could herald a monumental shift in the insurance sector, streamlining the way insurance products are accessed and compared. Once launched, Bima Sugam will empower users by providing comprehensive support for their personal and commercial insurance needs. The platform will play a pivotal role in identifying and comparing optimal insurance products, all while adhering to stipulated timelines. It will handle the sales, servicing, and claims processing for insurance policies. The platform will collaborate with aggregators like PolicyBazaar, brokers, banks, and insurance agents who will act as facilitators or bridges for individuals seeking to purchase insurance policies through the platform. This approach promises to simplify the insurance purchasing process and enhance accessibility for individuals seeking life, motor, or health insurance policies. Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go! 6 Sep, 2023 Source : CNBC TV18

Working with Health Insurers to Ensure 100% Cashless Claim Settlement Soon: IRDAI mumbai: Insurance sector regulator IRDAI on Wednesday said it is working on with health insurance providers to ensure 100 per cent cashless settlement of medical expense claims as soon as possible. Currently cashless claim process is tiresome and insurers deduct 10 per cent or more from the total billing in the name of consumables and other heads. Also, most hospitals don’t allow cashless admissions even though the insurance product offers such a facility, citing one or other excuses. Addressing the three-day global fintech festival here on the second day, IRDAI (Insurance Regulatory and Development Authority of India) chairman Debasish Panda said the regulator is working with health insurers and the national health authority and also the insurance council to roll out 100 per cent cashless claim settlements as soon as possible. However, he didn’t give any time frame. IRDAI is also working closely with the Insurance Council and the National Health Authority to onboard more hospitals onto the National Health Exchange for this, he said. Panda said the regulator is working with insurers to facilitate better and affordable pricing of health insurance for the elderly, which, he said, is an area of critical concern now as current pricing make mediclaim policies beyond the reach of most of the elderly. On the drive for ‘insurance for all’ by 2047 when the nation will be celebrating a century of independence, Panda said, “we should work for achieving the target much before the terminal date”. 6 Sep, 2023 Source : The Times Of India

As part of its Mission 2047 ‘Insurance for All’, IRDAI is planning to launch Bima Trinity – Bima Sugam, Bima Vistar, Bima Vaahaks – in collaboration with general and life insurance firms. IRDAI chairperson Debasish Panda The next 10 years are of utmost importance for the insurance sector, said the IRDAI chairperson Debasish Panda at the Global Fintech Fest 2023. “We’ll see a radical change in the nature of insurance buyers. As the level of awareness is on the rise, we will see more and more customised products. This means, we need more players, more distributors and more capital needs to be infused in the sector,” Panda said. Emphasising that technology will be the binding factor for Insurance 2.0, Panda said that a slew of reforms and initiatives in the insurance sector are now creating an environment that fosters innovation, promotes necessary ease of doing business, reduces compliance and facilitates avenues for growth. “Today, an insurance company can launch almost all types of insurance products without waiting for regulatory approval. It can even tie up with multiple distribution partners,” Panda said. As part of its Mission 2047 ‘Insurance for All’, IRDAI is planning to launch Bima Trinity – Bima Sugam, Bima Vistar, Bima Vaahaks – in collaboration with general and life insurance firms. Also Read: Bima Sugam: A platform that may transform the insurance business “The life insurance and general insurance councils which are the self-regulating industry bodies are also gearing up to support the industry in a more efficient way. They are also working towards enhancing customer experience, particularly in health insurance by bringing 100 percent cashless claim settlement,” Panda said. Currently, insurers deduct 10 per cent or more during claims. To facilitate more investments in the segment, Panda said that insurance companies’ boards now have more flexibility and autonomy for taking operational decisions independently, and various redundant prior approvals have been dispensed off. “The investment landscape is also being revamped to attract more investments in the sector. Be it in the increase in the limits for FDI, promoter status, or staggered lock-in requirements. Moreover, insurers can now invest in the funds of funds, alternate investment funds, debt instruments of INVITs and REITs, as so on and so forth,” he said. Earlier, an investment of over 10 percent in the paid-up capital of an insurer necessarily had to be made as a ‘promoter’. Under the 2022 regulations, the promoter threshold was raised from 10 percent to 25 per cent. 6 Sep, 2023 Source : money control