Irdai proposes to set up online marketplace ‘Bima Sugam’

Regulator Irdai has proposed to establish an online insurance market place, Bima Sugam, a one-stop solution to enhance availability, accessibility, and affordability of a product. A digital public infrastructure called ‘Bima Sugam — Insurance Electronic Marketplace’ is proposed to be established to empower and protect the interest of policyholders, Insurance Regulatory and Development Authority of India (Irdai) said in a draft.

The aim behind setting up the marketplace is to increase penetration of insurance in India and to enhance availability, accessibility, and affordability, it added.

Bima Sugam, it said will be a one-stop solution for all insurance stakeholders, vis-a-vis customers, insurers, intermediaries or insurance intermediaries, and insurance agents.

It would promote transparency, efficiency, collaboration across the entire insurance value chain, technological innovation in the sector, universalise and democratise insurance and achieve the vision of ‘Insurance for all by 2047’.

The draft said Bima Sugam would be a not-for-profit company.

“The company shall establish, facilitate, develop, operate, and maintain the marketplace for providing various services to the insurance stakeholders,” the draft said, listing out the regulatory framework for establishment, governance, functioning of Bima Sugam. Shareholding of the company would widely held amongst life, general and health insurers and no single entity having controlling stake. Shareholders will contribute to capital as and when required.

Irdai has invited comments on the draft Insurance Regulatory and Development Authority of India (Bima Sugam — Insurance Electronic Marketplace) Regulations, 2024 by March 4.

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