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The Insurance Regulatory and Development Authority of India (IRDAI) has approved the establishment of the much-awaited Bima Sugaman, an online platform for selling all types of insurance products. The platform, backed by regulators the Life Insurance Council and the General Insurance Council, allows individuals to compare and buy insurance policies directly from insurers.
The regulator gave this approval at its 125th Board meeting and said in a statement: “This marketplace will serve as a one-stop solution for all insurance stakeholders, including customers, insurers, intermediaries, and agents, thereby providing transparent “It fosters efficiency, efficiency and collaboration.” Across the entire insurance value chain. ”
According to the draft regulations, Bima Sugam is not a commercial company. “The Company shall establish, promote, develop, operate and maintain a marketplace for providing various services to insurance stakeholders.”
The company’s shares will be widely held among life insurance companies, general insurance companies, and medical insurance companies, and no single company will have control. Shareholders shall contribute capital as necessary. IRDAI will appoint two members of its board of directors, the latter of which will constitute a risk management committee to mitigate various risks.
Marketplaces reduce commissions as companies sell insurance policies directly on the platform, but insurance intermediaries also participate.
Individuals will no longer need to visit multiple insurance company websites or aggregator portals and will be able to purchase insurance online by simply logging on to this regulatory-approved platform, especially for obtaining insurance premium quotes. This is the case for those who are concerned about sharing their mobile phone number with an aggregator portal. In addition, the regulator is proposing to allow insurance companies to offer discounts on premium rates for insurance policies purchased directly through the platform.
Besides online marketplaces, IRDAI also plans to mandate demat policies and electronic insurance accounts (eIA) to build a framework and further drive end-to-end digitization of the insurance ecosystem.
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