All-in-one Policy Plan to Spread Insurance in India
The Insurance Regulatory and Development Authority (IRDA) is developing a new, reasonably priced bundled product to protect citizens against a variety of risks and is working to speed up claim settlements by connecting death registries to a common industry platform in an ambitious effort to increase the country’s low insurance penetration.
Points to ponder:
- India’s Insurance Regulatory and Development Authority (IRDA) wants to market a cost-effective bundled insurance policy that protects against risks related to accidents, life, health, and property.
- By connecting death registries to a standard industry platform, the IRDA hopes to speed up the processing of claim settlements and pay claims within hours.
- For the purpose of making insurance “available, affordable, and accessible” to all residents, the IRDA is undergoing a more comprehensive reorganisation of the insurance industry.
- To reach 1.2 crore (12 million), the regulator wants to treble the number of employees in the insurance industry.
- The IRDA is working with general and life insurance companies to develop the “Bima Trinity” plan, which aims to restructure the insurance business in a way that is comparable to the success of the banking industry’s Unified Payments Interface (UPI) system.
- Customers will have a convenient one-stop shop to acquire insurance, manage service requests, and pay claims thanks to the integration of distributors and insurers into a new platform called Bima Sugam.
- A bundled insurance policy named Bima Vistar is being created by the IRDA to cover risks related to accident, property, health, and life. Benefits for each risk will be clearly specified, and claim settlements without surveyors will be completed more quickly.
- The regulator intends to make premium payments possible by granting banks permission to use auto-debit.
- The IRDA envisions a women-focused workforce called Bima Vaahaks (carriers) at the Gramme Sabha level to market composite insurance products like Bima Vistar to women who are the heads of homes as part of the Bima Trinity.
- The IRDA aspires to resolve claims within six to eight hours, or at most one day, by linking with state-maintained digital birth and death registries.
- To attain the objective of offering insurance coverage to all citizens by 2047, the IRDA proposes to set up state-level insurance committees and work with state governments to create district-level insurance programmes.
- Insurers will be able to differentiate their capital requirements for specialty insurers, draw in more investment, and provide value-added services alongside their policies thanks to proposed changes to the insurance legislation.
- The IRDA thinks that by implementing these reforms, the insurance industry may “change the game” and achieve more accessibility and affordability, much like how the banking industry has developed, with several bank types catering to various consumer segments and demands.