The board of Insurance Regulatory and Development Authority of India (IRDAI) has given its approval to a series of proposals including the much hyped Bima Sugam portal.
The insurance regulator has decided that the online platform, which will serve as an electronic marketplace and one-stop solution for all insurance stakeholders, will be called “Rashtriya Bima Sugam Nigam Ltd”.
Last month it was announced that the portal will offer free services to consumers through a not-for-profit company under Section 8 of the Companies Act, 2013.
The board of the IRDAI will have two nominated members. The board will form a Risk Management Committee to mitigate risks, and the IRDAI will give the final approval for the appointments of Chairman and CEO of the Company.
Read also: Arrival of Bima Sugam, watershed moment for Insurance industry: Leaders
“The shareholding of the proposed company, which will develop, operate and maintain the platform, will be widely held among life, general and health insurers with no single entity having a controlling stake. The shareholders, as and when required, will contribute to the capital requirement of the company ,” said IRDAI.
Similar to the United Payment Interface (UPI) model, industry players expect Bima Sugam to revolutionize the way insurance is bought and taken care of in India by bringing buyers, insurers and intermediaries together on a single digital platform.
However, the launch of the platform, initially planned for January 2023, has experienced delays and is now rescheduled for June 2024 due to complexities involving stakeholders and technical challenges.
Apart from this, the insurance watchdog has also relaxed the proposed higher surrender value norms. The value will be proportional to the number of policy years. The surrender value will be more if the customer continues the policy for more years.
Also Read: IRDAI’s surrender value proposal, explained by SSV & GSV
IRDAI plans to notify the final surrender value guidelines by next week.
Additionally, the regulator has also given the green light to registration regulations for insurance companies, rural and social sectors, corporate governance rules and policy protection rules.