Bima Sugm will officially called as Rashtriya Bima Sugam Nigam Ltd and the shareholding of the company will be widely held amongst Life insurers, General Insurers and health insurers. Starting with a capital of Rs 200 crore, the shareholders, as and when required, will contribute to the capital requirement of the company
It will be a non-profit company, will be operative, accessible at all times and will not store or hold any data
Hyderabad:
Laying down the broad principles for its game changing move Bima Sugam, insurance regulator IRDAI on Tuesday has said the Insurance Electronic Marketplace, established through a company formed under section 8 of the Companies Act, 2013, will be a not for profit entity.
The new regulations shall come into force on the date of their publication in the official gazette.
Bima Sugm will be officially called as Rashtriya Bima Sugam Nigam Ltd and the shareholding of the company will be widely held amongst life insurers, general insurers and health insurers with no single entity having controlling stake.
Starting with a capital of Rs 200 crore, the shareholders, as and when required, will contribute to the capital requirement of the company.
State owned Life Insurance Corporation will pick up over 8 per cent in the the Insurance Electronic Marketplace, said Siddarth Mohanty, chairman, LIC.
The new regulations called as the Insurance Regulatory and Development Authority of India (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, has enunciated that consumers will not be charged for availing the services of the Bima Sugam.
It will be operative and accessible at all times and will not store or hold any data.
The Board of the company shall have a policy on revenue model which is self-sustainable.
Having its registered office in Mumbai, the company will have two nominees from the IRDAI on its Board besides having its own chairman and CEO, who will be appointed with the consultation of the IRDAI.
Industry sources said initially, the Bima Sugam will have a budget of Rs 200 crore which be raised from all stake from all insurance companies.
Also, earlier plan to give stakes to 2.5 per cent stake each to insurance brokers and agents have been dropped and only insurance companies will made promoters of this high-tech platform. .
Consultant E&Y is advising a core committee of insurers on how to build the Bima Sugam while search for the CEO of the company will happen soon.
The guidelines will enable the industry to also build collaborative eco-systems for the benefit of customers. It’s an encouraging move and a welcomed one for Indians, as they can get better access to life insurance products designed for their long-term life goals, said Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance.
The regulations focus on making insurance easy to access and affordable for everyone. It will streamline the entire insurance value chain, from policy issuance to claim settlement, thereby promoting transparency and collaboration at every stage.
Bima Sugam will be a one stop solution for all Insurance stakeholder’s vis-a-vis customers, insurers, intermediaries or insurance intermediaries and insurance agents to promote transparency, efficiency, collaboration across the entire insurance value chain, technological innovation in insurance sector, universalise and democratise insurance and to achieve the vision of “Insurance for all by 2047”, said the IRDAI.