The Insurance Regulatory and Development Authority of India (IRDAI) has revived the bid to launch Bima Sugam, a single platform for sale, servicing, and claims from insurance policies, CNBC TV-18 reported on April 17, citing sources privy to the development.
The discussion around Bima Sugam, which is aimed at streamlining insurance buying process for customers and promote transparency, had gained momentum last year.
According to persons who spoke to the news channel, IRDAI chairman Debasish Panda has recently met the chiefs of life and general insurance companies to discuss the path ahead for Bima Sugam's launch.
As per the structure being considered, life and general insurance companies will equitably hold a stake of 45 percent each, whereas, the remaining 10 percent will be held by other stakeholders including service providers, insurance aggregators, and the agent body, the sources said.
The sources further noted that IRDAI is likely to soon release the Request for Proposals (RFPs) for the appointment of service providers for Bima Sugam. Services providers would be responsible to put the Amazon-like platform together for sale, servicing, and settling claims for insurance policies, they added.
Around Rs 100 crore is expected to be raised for Bima Sugam, through insurance companies, service providers, insurance aggregators, and agent bodies, the persons said.
According to the sources, Bima Sugam could raise the funds for its operational expenses by levying a fee on insurance companies on each transaction, such as sale and renewal of policies, through their platform. A fee could also be charged for the enquiries that will be made, they added.
The rollout of Bima Sugam could happen in two phases, the sources claimed, noting that initially the platform could only be used as a data bank for insurance firms and intermediaries. In the second phase, the products will get listed on it.
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