Only Bajaj Allianz Life Insurance and ICICI Lombard have implemented the Bima-ASBA framework, while major insurers like Life Insurance Corporation, HDFC Life, ICICI Prudential Life, and SBI Life remain non-compliant despite revised guidelines and a firm March 1, 2025, deadline, industry sources said.
Bima-ASBA (Application Supported by Blocked Amount), introduced by the Insurance Regulatory and Development Authority of India (IRDAI), prevents insurers from deducting money from a customer’s account until a health insurance proposal is formally accepted.
An executive director at a leading insurance company, speaking on condition of anonymity, cited tight timelines and increasing regulatory pressure as key challenges.
"There are too many regulations and too little time to implement them. Companies are in discussions with IRDAI for a potential extension of the deadline," the official said.
While the framework is a positive move, industry insiders believe the timeline for implementation could have been more lenient, he said.
The revised guidelines were issued in mid-February, leaving insurers with only a few weeks to comply.
The new framework aims to prevent premature debits and ensure greater transparency and security for policyholders. It is modelled after similar systems in financial markets, like ASBA in the stock market, where funds remain blocked until a transaction is completed.
A review of company websites shows that no other insurers have provided public updates on their Bima-ASBA compliance so far.
Initial resistance
The Bima-ASBA framework was initially introduced last year but faced resistance from insurers due to ambiguities surrounding operational implementation.
In response to these concerns, IRDAI issued revised guidelines in February, providing clearer instructions and a firm deadline for compliance.
Despite the industry's pushback, some remain optimistic about the transition.
"There is no reason for any company to resist this shift, especially when it benefits policyholders," said Gopal Balachandran, CFO, ICICI Lombard General Insurance Company.
He believes companies will eventually comply.
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