{"id":39621,"date":"2024-02-15T11:30:44","date_gmt":"2024-02-15T06:00:44","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=39621"},"modified":"2025-04-24T17:44:04","modified_gmt":"2025-04-24T12:14:04","slug":"irdai-issues","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/irdai-issues\/","title":{"rendered":"IRDAI issues exposure draft on Bima Sugam e-marketplace for insurance"},"content":{"rendered":"<h2>What\u2019s in today\u2019s article?<\/h2>\n<ul>\n<li>Why in news?<\/li>\n<li>What is Bima Trinity?<\/li>\n<li>What is Bima Sugam?<\/li>\n<li>What are the benefits of Bima Sugam?<\/li>\n<li>Will the physical mode go away?<\/li>\n<li>What is Insurance Regulatory and Development Authority of India (IRDAI)?<\/li>\n<li>News Summary: IRDAI issues exposure draft on Bima Sugam e-marketplace for insurance<\/li>\n<li>Key highlights of the proposed guidelines<\/li>\n<\/ul>\n<h2>Why in news?<\/h2>\n<ul>\n<li>The Insurance Regulatory and Development Authority (IRDAI) has unveiled an exposure draft proposal for an insurance electronic marketplace called Bima Sugam.<\/li>\n<li>Bima Sugam is pitched as the UPI moment for insurance and one arm of the Bima trinity.<\/li>\n<\/ul>\n<h2>Bima Trinity<\/h2>\n<ul>\n<li>Bima Trinity is a three-pronged strategy by the central government of India to increase insurance penetration.<\/li>\n<li>It&#8217;s an initiative by the IRDAI to increase the three As: availability, affordability, and accessibility of insurance products to a larger population.<\/li>\n<li>Bima Trinity is made up of three components:\n<ul>\n<li>Bima Sugam: A digital portal that integrates distributors and insurers into a single platform<\/li>\n<li>Bima Vistaar: An all-in-one insurance product that offers comprehensive insurance coverage at affordable prices<\/li>\n<li>Bima Vahak: A women-led field distribution force<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Bima Sugam<\/h2>\n<ul>\n<li>About\n<ul>\n<li>It is an online platform where customers can choose a suitable scheme from multiple options given by various companies.<\/li>\n<li>All insurance requirements, including those for life, health, and general insurance (including motor and travel) will be met by Bima Sugam.<\/li>\n<li>This platform will help in the settlement of claims, whether it is health coverage or death claims, in a paperless manner on the basis of policy numbers.<\/li>\n<\/ul>\n<\/li>\n<li>Steps taken by IRDA\n<ul>\n<li>IRDAI has appointed a committee for the creation of the platform.<\/li>\n<li>It now plans to go for requests for proposals soon to appoint a service provider for the platform.<\/li>\n<li>The service providers will be the technological partners for creating and running a platform to provide all the services in one place.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Benefits of Bima Sugam<\/h2>\n<ul>\n<li>Single window for the policyholder\n<ul>\n<li>The proposed platform would act as a single window for the policyholder to manage his\/her insurance coverage.<\/li>\n<li>It will provide end-to-end solutions for customers\u2019 insurance needs i.e., purchase, service, and settlement in a seamless manner.<\/li>\n<\/ul>\n<\/li>\n<li>Empowerment of consumers\n<ul>\n<li>Currently, there are hundreds of insurance schemes in the life and non-life sectors.<\/li>\n<li>Customers have no idea who is offering the best deal and the pros and cons of different schemes.<\/li>\n<li>Bima Sugam will enable them to identify a suitable scheme for the customers in a single platform.<\/li>\n<\/ul>\n<\/li>\n<li>Benefits for insurance companies and intermediaries\n<ul>\n<li>It will facilitate insurance companies to access the validated and authentic data from various touch points on a real-time basis.<\/li>\n<li>The platform will interface for the intermediaries and agents to sell policies and provide services to policyholders, among others, and <u>reduce paperwork<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>Universalise and democratise insurance\n<ul>\n<li>IRDAI says Bima Sugam is an electronic marketplace protocol which would universalise and democratise insurance.<\/li>\n<li>This protocol will be connected with India Stack which is a set of APIs (application programming interface) that allows governments, businesses, startups, etc. to utilise the unique digital infrastructure to enable seamless delivery of services.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Will the physical mode go away?<\/h2>\n<ul>\n<li>Customers will open an insurance account and the policies will be stored in this account, thus obviating the need for physical documents.<\/li>\n<li>Identifying the right policy, buying it, settling the claims and renewals will be streamlined in online process.<\/li>\n<li>The process will be mostly on the lines of demat accounts and online trading in the case of stock markets.<\/li>\n<\/ul>\n<h2>Insurance Regulatory and Development Authority of India (IRDAI)<\/h2>\n<ul>\n<li>IRDAI is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999.<\/li>\n<li>It was established for overall supervision and development of the Insurance sector in India.<\/li>\n<li>IRDAI&#8217;s duties include:\n<ul>\n<li>Regulating the insurance business<\/li>\n<li>Promoting the orderly growth of the insurance business<\/li>\n<li>Protecting the interests of policyholders<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>News Summary: IRDAI issues exposure draft on Bima Sugam e-marketplace for insurance<\/h2>\n<ul>\n<li>IRDAI has issued an exposure draft on electronic marketplace Bima Sugam.<\/li>\n<\/ul>\n<h2>Key highlights of the proposed guidelines<\/h2>\n<ul>\n<li>Not-For-Profit Structure: Bima Sugam will operate as a not-for-profit company under Section 8 of the Companies Act, 2013.<\/li>\n<li>Multi-Stakeholder Ownership: The shareholding of Bima Sugam will be widely held among life, general, and health insurers.\n<ul>\n<li>No single entity will be holding a controlling stake. This ensures a balanced and collaborative approach towards decision-making and operations.<\/li>\n<\/ul>\n<\/li>\n<li>Regulatory Oversight: IRDAI will play a crucial role in overseeing Bima Sugam&#8217;s governance and operations.\n<ul>\n<li>The authority will nominate two members to the company&#8217;s board and provide prior approval for the appointment of the Chairperson &amp; CEO.<\/li>\n<\/ul>\n<\/li>\n<li>Risk Management: Bima Sugam will establish a dedicated risk management committee to identify and mitigate various risks associated with its operations.<\/li>\n<li>Consent-Based Architecture: The platform will operate on a consent-based architecture, ensuring that users have control over their data and interactions within the marketplace, thereby enhancing trust and privacy.<\/li>\n<li>Free Services for Consumers: Consumers will not be charged for availing services through Bima Sugam, making insurance products and services more accessible to individuals across diverse socio-economic backgrounds.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1)\u00a0What is an Insurance?<\/h3>\n<p>Insurance is a legal agreement between an insurance company and an insured. The insured receives financial protection from the insurer for losses they may suffer under specific circumstances.\u00a0<\/p>\n<h3>Q2) What is India Stack?<\/h3>\n<p>India Stack is a collection of digital infrastructure and platforms, including open application programming interfaces (APIs) and digital public goods. It&#8217;s the largest open API in the world.<\/p>\n<hr \/>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/business\/irdai-issues-exposure-draft-on-bima-sugam-e-marketplace-for-insurance\/article67842665.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>IRDAI issues exposure draft on Bima Sugam e-marketplace for insurance<\/u><\/a><u> | <\/u><a href=\"https:\/\/business.outlookindia.com\/insurance\/irdai-releases-exposure-draft-for-bima-sugam-insurance-e-marketplace\" target=\"_blank\" rel=\"nofollow noopener\"><u>Outlook India<\/u><\/a><u> | <\/u><a href=\"https:\/\/www.livemint.com\/money\/personal-finance\/here-is-what-you-should-know-about-the-bima-sugam-portal-11666200579440.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>Mint<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In January 2017, India and UAE signed a Comprehensive Strategic Partnership Agreement.<\/p>\n","protected":false},"author":5,"featured_media":39622,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-39621","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=39621"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/39622"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=39621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=39621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=39621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}