Debasish Panda, chairman, IRDAI
Apr 19,2025, is the 25th foundation day of the Hyderabad based regulator and IRDAI chief chosen that day to launch Bima Sugam , which is expected to usher in the `UPI moment’ in the Indian insurance industry
Mumbai:
Debasish Panda, chairman, IRDAI, has set a new dead line and asked the insurers to complete the game changing project Bima Sugam, Insurance Electronic Marketplace, by Apr 19,2025, so that it goes live from that day.
In fact, Apr 19,2025, is the 25th foundation day of the Hyderabad based regulator and IRDAI chief has chosen that day to launch Bima Sugam, which is expected to usher in the `UPI moment’ in the Indian insurance industry.
Panda had met some of the key insurers and Ernst & Young(E&Y), the consultant to the project, on the last Friday, to review the progress of the project and had given them a couple of new instructions for completing it within the next one year.
E&Y has been asked to chart out the final part of the Bima Sugam project for developing the e-market platform, along with the consultation of all stake holders.
The earlier deadline for the completion of the project, which was conceived soon after Panda had taken over as the chairman of the IRDAI on Mar15 2022, was July, 2024.
The IRDAI chief also asked the insurers to form the company for managing the Bima Sugam and appoint the key functionaries quickly so that day-to- day decisions of the project can be taken by them.
The head hunting agency, Executive Access, apparently has already shortlisted the names of key functionaries of the new company and after interviewing them, some of the key appointments can be made soon.
Earlier, laying down the broad principles for its high-tech move Bima Sugam, the IRDAI had 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.
Starting with a capital of Rs 200 crore, the shareholders, all the life , general and health insurers, as and when required, will contribute to the capital requirement of the company.
Bima Sugam will enable individuals to buy a life, health, motor or property etc. insurance policy online. It will translate to easy access under a single roof for insurance companies, agents, brokers, banks and even aggregators.
This digital platform would also enable the intermediaries including agents to provide services to policyholders with no additional cost/investment for the agents/distribution partners.
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.
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.
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.
Bima Sugam can be a turning point in the Indian insurance sector provided the a Front End Sales Team is taken into confidence and trained according to the needs of the customers and changing scenario!
Insurance sector can grow leaps and bounds if IRDAI, Insurers and Government of India change and devise according to the customers’ Needs and aspirations and not according to their own whims and fancies taking decisions sitting in the comforts of their offices!
Until and unless the gaps between the regulator, Govt and Insurers and the needs and aspirations of Customers are not removed, the Indian insurance sector shall not grow further as desired.
The critical views, suggestions and needs of marketing and sales force must be addressed too because they really know the pulse of the customers and the market.