IRDAI Releases Draft for Bima Sugam, the One-stop Marketplace Solution for All Stakeholders
Moneylife Digital Team 14 February 2024
Insurance Regulatory and Development Authority of India (IRDAI) has released a draft regulation for an insurance electronic marketplace (IEM) Bima Sugam, the one-stop solution for all stakeholders, including customers, insurers, intermediaries or insurance intermediaries and insurance agents.
 
IRDAI says with Bima Sugam it aims to promote transparency, efficiency, collaboration across the entire insurance value chain, technological innovation in the insurance sector, universalise and democratise insurance and achieve the vision of 'Insurance for all by 2047'. These regulations specify the regulatory framework for establishing, governance, and functioning of the Bima Sugam - IEM and for connected matters.
 
Consumers should not be charged for availing services of Bima Sugam and the services should be provided on consent-based architecture, the regulator says, adding, "The board of the Company shall have a policy on revenue model which is self-sustainable."
 
Bima Sugam - IEM will be a not-for-profit entity established through a company formed under Section 8 of the Companies Act to establish, facilitate, develop, operate and maintain the marketplace for providing various services to the insurance stakeholders.
 
"The shareholding of the Company shall be widely held amongst life insurers, general insurers and health insurers with no single entity having a controlling stake. The shareholders, as and when required, will contribute to the capital requirement of the Company," IRDAI says. 
 
IRDAI will nominate two members on the board of the company. The board is required to constitute a risk management committee to mitigate various risks. Before appointing a chairperson and chief executive officer (CEO) for Bima Sugam, the company is required to obtain prior approval from IRDAI. 
 
"The Company shall appoint key managerial persons (KMPs) with appropriate experience, a mix of skills, and the integrity necessary to discharge their responsibilities for the operation and risk management of the Marketplace and clearly specify the roles and responsibilities of the management," IRDAI says.
 
The insurance regulator has requested all stakeholders to forward their comments or suggestions, if any, on the proposed regulations in the format (Annexure- B) on or before 5pm on 4 March 2024 to [email protected] with a copy to [email protected].
 
Comments
r_ashok41
4 months ago
hope the regulator brings in the change
Pragna Mankodi
4 months ago
A good move by the Regulators that is likely to address many issues with one stroke. Hope, it takes shape early and gets implemented.
mohan2506
4 months ago
App needs to be Senior Citizen friendly in terms of ease of usage. It must include all categories - life, medical, vehicle, pension and reminders for upgrades, dues etc.
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