The Ministry of Finance has prohibited three PSU general insurers- Oriental Insurance Company , National Insurance Company and United India Insurance- from providing any capital to Bima Sugam as currently, they lack shareholders’ capital and they are not permitted use policyholders’ fund for the project
Hyderabad / New Delhi: Overcoming a few initial challenges Bima Sugam, the game changing electronic market place, planned by insurance regulator IRDAI, has finally achieved its financial closure recently and has mopped up around Rs 340 crore from the Indian insurers.
With a bit of delay, all the domestic insurers and reinsurer GIC Re, except three PSU general insurers- Oriental Insurance Company, National Insurance Company and United India Insurance, have contributed their share of the allocated capital for the Bima Sugam, which is being planned over the last the two years with the direct supervision of the IRDAI.
However, the Ministry of Finance has prohibited three PSUs from providing any capital to the Bima Sugam as currently, they lack shareholders’ capital and they are not permitted use policyholders’ fund for project.
Almost, Rs 340 crore has been collected out of Rs 350 crores, the project had intended to mobilise from the insurers.
The project, which is a part of Bima Trinity- Bima Sugam, Bima Visaar and Bima Vahak, as planned by former IRDAI chairman Debasish Panda is over delayed now.
Panda, who demitted office on 13th March, had set a date of Apr 19, the foundation day of the IRDAI, as the launching day of the Bima Sugam.
However, the IT platform for the project is not ready yet. The project consultant E&Y is yet to decide about an IT vendor to develop the hi-tech platform.
Analysts point out that it is important to have new chairman to provide further push to the project.
Even, the launch of Bima Vistaar and Bima Vahak, the localised women-centric insurance field sales force for selling insurance in the hinterland of country, which was also planned for an April launch, has been postponed due to absence of a regular chairman at the IRDAI.
Insurtech Zopper has already completed the IT platform for Bima Vahak.
The mandate to run Bima Vahak project has now been given to Bima Sugam India Federation, a non-profit body which will be running the Bima Sugam also.
Bima Sugam will be a public digital infrastructure, keeping the policyholder at the core to offer an end-to-end journey of the lifecycle of the product and beyond. It will help customers to exercise their choice, and distributors will benefit immensely as they will be able to complete a transaction at a cheaper price and in less time.
Bring New Technology to empower Insurance Advisors.
Enhance their Education and Knowledge Skills. Look after their Basic Minimum Needs like Group Insurance, Group Mediclaim Insurance, Provident Fund, Gratuity, Pension, Honour, Dignity and Comfortable Office Environment, Space and Support Services.
IRDAI has completely ignored all such important issues turning a blind eye to it. Instead his last few years has brought a bad repute to Insurance Advisors and Insurance Sector itself with too many frequent changes.
Allow PSUs and LIC a free hand to work and flourish!
Keep Private Insurance Sector Separate as good Competitors.
Let IRDAI provide equal platform to them but not to harm PSUs who have been serving the People of Bharat and Bharat Sarkar as well. Trillions of Projects have been funded by LIC since 1950 under Five Years Plans
Let the good work be continued and not halted by favoritism to Private Insurance Sector at the cost of harming Government Insurance Companies.
In the name of increasing insurance penetration IRDAI is bringing down quality of Insurance. Getting an Insurance intermediary license is so easy that almost anyone can get a license, and as a result market is flooded with intermediaries leading to all sorts of unethical practices.
IRDAI vision is perfect, but lack required intelligence to achieve that vision.
Is it not the responsibility of the owners (the Govt itself) too to find funds for three of the PSUs to participate in the investment for Bima Sugam? Everyone forgets the good times when these PSUs paid dividends to the Govt instead of adding that to their own reserves and capital! And who is responsible for their plight other than the owners who treat them as orphans at such times of crucial decisions?