Recently, Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has formed a steering committee, which will act as the apex decision making body for creation of its ambitious Bima Sugam platform.
About Bima Sugam platform:
- It will enable individuals to buy life, health, motor or property insurance policies online.
- The platform will enable easy access under a single roof for insurance companies, agents, brokers, banks and even aggregators.
- The platform will act as a centralised database which will assist consumers with all insurance related queries.
- It will also pave the way for a speedy acceptance of new or sandbox products.
- Cyril Amarchand Mangaldas (CAM) has been appointed as the legal counsel for the project.
- Responsibilities of CAM will include incorporation of Section 8 not-for-profit company which will be the company owning the Bima Sugam platform.
- The platform will support all personal and commercial/business insurance requirements and support in identifying and comparing optimal products to meet user requirements within stipulated timelines.
- The entire spectrum of insurance offerings through the platform will include life insurance and all its variants — term plans, savings (Par and Non-Par), annuity and pension plans etc.
- The platform will have to demonstrate end-to-end digital on-boarding journey for all insurance products without any manual interventions.
Q1) What is Insurance ?
Insurance is a financial arrangement that provides protection and financial compensation against specific risks or losses. It involves a contract between an individual or entity (the policyholder) and an insurance company (the insurer). The policyholder pays regular premiums to the insurer, and in return, the insurer agrees to provide financial support or coverage in the event of certain predefined events