IRDAI Clears Decks for Bima Sugam for Buying, Selling, Settling Claims for Insurance Policies.
Bima Sugam will list insurance products from all life, health, and general insurance categories, providing a comprehensive one-stop shop for insurance needs.
The Insurance Regulatory and Development Authority of India (IRDAI) on Friday approved the setting up of Bima Sugam. Bima Sugam will list insurance products from all life, health, and general insurance categories, providing a comprehensive one-stop shop for insurance needs.
Earlier, IRDAI had defined Bima Sugam as a one stop solution for all Insurance stakeholder’s visa-vis customers, insurers, intermediaries or insurance intermediaries and insurance agents to promote transparency, efficiency, collaboration across the entire insurance value chain, technological innovation in insurance sector, universalize and democratize insurance and to achieve the vision of “Insurance for all by 2047”.
IRDAI said: “The IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, aims to establish a Digital Public Infrastructure named Bima Sugam towards universalization and democratization of insurance as well as empowering and safeguarding policyholders’ interests and achieve the vision of “Insurance for all by 2047.”
Earlier it was reported that IRDAIin a recent meeting approved eight principle-based regulations in its board meeting. One of the key approvals was Bima Sugam.
The shareholding of Bima Sugam will be widely held among all the life, general and health insurers with no single entity having a controlling stake.Bima Sugam will have two nominees from the IRDAI on its board apart from having the company’s own chairman and CEO, who will be appointed after consultation with the IRDAI.
Apart from Bima Sugam, IRDAI also approved other regulations including safeguarding of policyholders’ interests, rural and social sector responsibilities, registration, corporate governance and actuarial, finance, investment along with those regarding insurance products and operation of foreign reinsurance branches.
Here are the top principles adopted:
1. The IRDA (Rural, Social Sector, and Motor Third Party Obligations) Regulations, 2024 consolidate 2 erstwhile regulations pertaining to minimum business obligations in rural, social sector and motor third party business for insurers, as mandated under the Insurance Act, 1938.
2. The IRDAI (Registration, Capital Structure, Transfer of Shares & Amalgamation Insurers) Regulations, 2024, streamline seven regulations into a single comprehensive framework. It aims to foster the growth of the insurance sector by simplifying various processes, including registration of insurers, transfer of shareholding, capital structure, amalgamation of insurers, and listing of shares on stock exchanges.
3. The IRDAI (Corporate Governance for Insurers) Regulations, 2024 aim to establish a robust governance framework for insurers, defining the roles and responsibilities of the board and management. This is for the first time that the governance aspects under the existing guidelines are notified in the form of regulations, which highlights the importance of governance in the functioning of an insurance company.
4. The IRDAI (Insurance Products) Regulations, 2024 merge six regulations into a unified framework aimed at enabling insurers to swiftly respond to evolving market demands, enhancing the ease of conducting business, and boosting insurance penetration.
5. The IRDAI (Registration and Operations of Foreign Reinsurers Branches & Lloyd’s India) Regulations, 2024, consolidate two regulations and aims to foster the systematic development of the reinsurance sector in India by promoting orderly growth and harmonizing the existing legal and regulatory framework.
6. The IRDAI (Actuarial, Finance, and Investment Functions of Insurers) Regulations, 2024 consolidate nine regulations into a single framework focused on enhancing the efficiency and responsiveness of insurers’ actuarial, finance, and investment functions.
7. The IRDAI (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024, consolidate eight regulations into a unified structure, focusing on several key objectives aimed at ensuring fair treatment of prospects during solicitation and sale of insurance policies and protecting the interests of policyholders throughout their engagement with insurers and distribution channels.
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