“No other person can commence or operate with same or similar objectives of the Marketplace and functions of the company,’’ the IRDA’s new regulations have clarified
The new regulations have provision for penalty for certain violations/breaches by the players. The IRDAI can initiate appropriate actions against the company and/or the regulated entities for violation of the provisions of these regulations and relevant provisions of Act
Hyderabad:
In a bid to protect the uniqueness of its game changing move Bima Sugam platform in the Indian economy, the new IRDAI regulations, which have now been published by the government in the gazette notification, bar any other entities from floating similar platform like Bima Sugam- Insurance Electronic Marketplace.
“No other person can commence or operate with same or similar objectives of the Marketplace and functions of the company,’’ the new regulations, which are now already made into law, have clarified.
Broad principles have been laid down in these regulations to enable the functioning of the company and the Bima Sugam – Insurance Electronic Marketplace, said the IRDAI.
However, industry players have sought further clarifications on the issue of banning competition against Bima Sugam- Insurance Electronic Marketplace as under the existing regulations insurance web aggregators are also allowed to sell life, general and health insurance products through online and distance marketing modes.
“There are many existing e-platforms, having been developed by different players including Policy Bazaar, are there now in the Indian insurance industry serving different purposes. Will they be banned as they some way the other replicate some of the features and functions of Bima Sugam-Insurance Electronic Marketplace? Though, the full features as well as functions of the Bima Sugam are yet to be known, IRDAI should further clarify on this matter immediately,” reacted a few players in the industry adding that issue of banning ant competition has created a confusion among the industry players.
Policy Bazaar officials have been participating actively in the core committee meetings of insurers for developing the basic architecture of the Bima Sugam, industry sources said.
The Insurance Brokers’ Association of India (IBAI), the official representative body of over 700 insurance broker, is of the opinion that the existing insurance platforms will not be deemed to be competitors to Bima Sugam, which has a much wider operational scope. “
This is also based on the earlier discussions, we had with the regulator, wherein we had been reassured that Bima Sugam will be an additional ally in insurance penetration and none of the existing distribution channels/platforms would be impacted,” said IBAI officials.
The new regulations have provision for penalty for certain violations/breaches by the players. The IRDAI can initiate appropriate actions against the company and/or the regulated entities for violation of the provisions of these regulations and relevant provisions of Act.
Like any other players in the Indian insurance industry, the IRDAI can conduct an enquiry or an investigation or an inspection of the books of accounts, records, documents and infrastructure, systems and procedures, of the company
Bima Sugam – Insurance Electronic Marketplace will be established by a not for profit company formed under section 8 of the Companies Act, 2013.
However, the company will have a board approved policy on a self-sustainable revenue model.
The main objective of the company shall be to establish, facilitate, develop, operate and maintain the Marketplace for providing various services to the insurance stakeholders.
The design of the Marketplace will include appropriate security mechanism, up-to-date latest technology and privacy standards which will ensure open and fair access, confidentiality by adopting best practices to address current and future security requirements.
The participation to the Marketplace will be subject to complying with the requirements and security protocols laid down by the company.
The competent authority will issue guidelines and circulars whenever required under these regulations considering the need for effective functioning of the Marketplace.
Congratulations Hope the company will bring some affordable health insurance policies.
Insurence companies are blackmailing senior citizen as insurence companies know that they can not port to other companies. After paying the premium through out their active life they need this assistance badly in their need time. Insurence companies are using their tactics to treat them as a mulching cow. Even the public sector insurence companies are also doing the same. Premiums are doubled in a years time. There is no grievances cell is available for a commen men for lodging a complaints.
Buy from good agents you will get service, and dont ask for comission if you want service else enjoy.. whole world is bad and you are good
The Gov pressure for profitability is never before on PSUs. Employee benefits , regular salary hike , recruitment etc are being withheld due to high claim ratio of PSUs. The soul purpose of PSU insurance companies during establishment was serving the common man and increase penetration ,now it’s no more…only profit and otherwise out…
Who says serving customers and profitability cannot go together?
PSUs are inefficient & corruption is prevalent…tax payers money cannot be spent on giving salaries to their employees & keeping them afloat…if they cannot function profitably they shouly be closed
Health Insurance is a basic necessity for common people. But Government has imposed18% GST which is an additional burden for common people, those are not eligible for Government health schemes. IRDAI should feel the pain of common people as well as Senior Citizens whose income is limited but need health care and suggest the Government to waive GST or impose minimum GST on health insurance premium.
First of ALL due to popularity of Mutual Funds/NPS created by giving special tax free or lower tax rates and incentives thru LTCG very few can afford Life insurance after age of even 35. IRDAI should try to abolish GST on Life Insurance Products upto 1.5 lacs per annum and have heavy advertising to encourage 20 year Olds to buy Life Insurance products especially with Add ons/riders and options utilizing both 80C as well as 80D and tie up with NPS too.
Letter from Insurance Brokers Association of India(IBAI)
The sensational headlines recently in your highly circulated magazine “ IRDAI bans competition against Bima Sugam” has created a lot of confusion and apprehension among the members of the Insurance Brokers Association of India (IBAI).
The news item gives the impression that all existing electronic insurance platforms/ marketplaces run by intermediaries could be considered as competitors to Bima Sugam, with the continued existence of these insurance platforms being in doubt. 4a and 4b of the gazette notification read with 7h ( duties of the company include defining and enforcing participation criteria) adds to the doubt if insurance intermediaries could be discriminated against, in the marketplace. No doubt, insurance intermediaries are included under the definition of insurance stakeholders.
The IBAI is of the opinion that this is not the intent behind the regulation and the existing insurance platforms will not be deemed to be competitors to Bima Sugam, which has a much wider operational scope. This is also based on the earlier discussions, we had with the regulator, wherein we had been reassured that Bima Sugam will be an additional ally in insurance penetration and none of the existing distribution channels/platforms would be impacted.
Having said that, IBAI is writing to the IRDAI seeking clarity on what is the full import of section 4a of the regulations. A public announcement from the regulator will douse fears/ apprehensions and intermediaries can work with redoubled vigour towards the avowed objective of ‘ Insurance for All by 2047’
Even after, SEBI implemented INVESTORS PROTECTION ACT by abolishing the NISM qualified distributors’ brokerage, financial benefits, club member benefits & other financial benefits in mutual fund industry in India, it still grew in a tremendous way.
Like wise IRDAI also implement the same process to cut expense ratio for procuring new business in insurance industry.
IRDAI should implement the INSURANCE POLICY HOLDERS PROTECTION ACT by abolishing the agent’s high percentage commission, competition for new premium, club member benefits & all types of financial benefits to agents and employees of insurance industry in India.
If it will be implemented, then more than 50% Indian population will get the direct financial benefits as compared to bank benefits and postal benefits.