May 27, 2023
The Insurance Regulatory and Development Authority of India (IRDAI) has announced plans to introduce a bundled insurance product that will combine life, health, casualty, and property coverage under a single affordable policy. The initiative is being developed in collaboration with the General Insurance Council and the Life Insurance Council.
The proposed product is part of a broader initiative known as the Bima Trinity, which comprises three interconnected components designed to expand insurance access across India, particularly in underserved and rural regions.
Bima Sugam will serve as the digital platform and protocol layer that supports the overall ecosystem. It is intended to streamline policy issuance, management, and claims processing through a unified digital interface accessible to insurers, intermediaries, and policyholders alike.
Bima Vistaar is the bundled insurance product itself, designed to provide comprehensive coverage to the common person in an accessible and affordable format. The plan will cover life, health, casualty, and property risks under a single policy, removing the need for individuals to purchase multiple separate plans for different types of protection.
A key feature of Bima Vistaar is its parametric structure. Under this model, claim settlements would be triggered automatically based on predefined conditions, eliminating the need for surveyors or loss assessors to evaluate individual claims. Upon a qualifying event, the defined benefit amount would be transferred directly to the policyholder's bank account, enabling faster and more transparent claim resolution.
Bima Vahak is the third component of the Bima Trinity, functioning as a women-centric distribution channel. It is specifically designed to extend insurance awareness and reach into rural and untapped markets by leveraging local women as insurance representatives within their communities.
In October 2022, IRDAI had constituted a dedicated committee to evaluate and recommend strategies for integrating the three components of the Bima Trinity and ensuring operational synergies across the platform, product, and distribution framework.
The initiative reflects IRDAI's broader objective of achieving universal insurance coverage in India by making protection products more accessible, affordable, and easy to understand for all segments of the population.
Source:indianexpress.com
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