Bajaj Allianz Life has announced that it will go live with the Bima-Application Supported by Blocked Amount (Bima-ASBA) facility.
Bima-ASBA is an initiative introduced by the Insurance Regulatory and Development Authority of India (IRDAI) to streamline premium payments and enhance policyholder convenience.
The Bima-ASBA facility allows policyholders to authorise the blocking of a specified premium amount -- up to Rs 2 lakh -- in their bank account using UPI’s One-Time Mandate (OTM).
This amount remains in the policyholder’s account, earning interest, until the insurer completes the underwriting process and accepts the policy proposal. If the policy is not issued within 14 days or the proposal is declined, the blocked amount is automatically released back to the customer.
This eliminates the need for upfront premium payments and ensures greater financial security and transparency, according to a press release dated February 22.
The company, in partnership with its payment partners, has implemented this initiative, reinforcing its commitment to a customer-centric and digital-first approach, said the release.
“In line with IRDAI’s vision of ‘Insurance for All by 2047,’ Bima-ASBA is a transformative step toward enhancing transparency, trust, and digital convenience in the insurance sector, it added.
With this move, Bajaj Allianz Life strengthens its position as a pioneer in digital insurance solutions, driving innovation to create a seamless and secure insurance experience for policyholders, it said.
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