What is Bima Sugam Portal? Learn in detail about Bima Sugam IRDA New Change

What is Bima Sugam Portal? Learn in detail about Bima Sugam IRDA New Change

The Insurance sector will watch one of the most significant reforms through a two-letter word, ‘Bima Sugam Portal.’

According to many Insurance experts, the Bima Sugam Portal can be a game changer in the Insurance sector as this would be a one-stop solution for multiple services, including the sale of policies, renewal, and settlement of claims.

what is bima sugam portal

The IRDA has directed insurance companies to operationalize the Bima Sugam by Jan 2023. This article will discuss Bima Sugam and how it will benefit ordinary people like you and me. So stay tuned with the entire article for a clear view of this new platform.

What is BIma Sugam Portal ?

Primarily we can say Bima Sugam Portal would be a one-point exchange of all insurance products like LIfe Insurance, Health Insurance, General Insurance, and all other insurance policies.

This is a digital platform that will help in insurance penetration across India as well as give a hassle-free experience for Insurance buyers.

UPI has revolutionized digital payment across the country in the banking sector and has become a daily digital medium for ordinary people. 

We are using UPI as a must-to-use tool for transferring payments for every transaction due to its straightforward and simple-to-use interface and simplified process.

Like the UPI, “Bima Sugam” will be a one-stop solution for buying and selling insurance and policy settlement.

Like an Insurance Mall : 

Bima Sugam will work as an insurance mall where you can go and buy any policy from any insurance company of your choice. Here all Life and General Insurance policies will be listed.

Bima Sugam will be responsible for the sale, servicing, and claim to come from these insurance policies.

Who Can buy Insurance Policies from Bima Sugam Portal ?

Aggregators (such as PolicyX, PolicyBazaar, etc.), Brokers (such as Bajaj Capital, Probus Insurance Broker, etc.), Banks, and Insurance advisors will act as facilitators or bridge-like entities for selling policies through Bima Sugam to individuals.

The best part of this is you, as an individual, can also directly buy your vehicle, health or life insurance policies from Bima Sugam.

Who Owns Bima Sugam Portal ?

The General and Life Insurance companies will co-fund the insurance exchange platform. Initially, the Digital platform needs an investment of around 85 crores which the insurance companies will jointly fund.

Bima Sugam Major Stake Holders

General InsuranceLife Insurance
ICICI LombardLIC
New India InsuranceHDFC Life
HDFC ErgoSBI Life
Tata AIG GeneralBajaj Allianz Life
Bajaj Allianz GeneralTata AIA Life
United India InsuranceAditya Birla Sun Life

The above list of insurance companies will be the initial investors. As the operation of Bima Sugam Portal rolled, more insurance companies will come together to fund the platform.

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What is the Benefit for us as the Common People

There will be several benefits we can leverage through Bima Sugam Portal some of them mentioned below :

Centralized Platform and Database

There will be a centralized platform and database by which any user or insurance buyer can shift his policy to any insurance provider based on coverage, pricing, and service.

Users/buyers can choose on their own from a wide range of insurance products and decide after a clear comparison from different insurance companies.

The digital platform will also reduce the commission significantly, which now the insurance companies pay to agents for the sale/renewal of policies.

Significant Reduction in Premium Rates

Currently, life insurance companies pay around 21-45% commission to their agents, aggregators and brokers based on the policy term.

For example, you are paying a Rs 1000 premium per month for your life insurance policy, and then the insurance company is getting Rs 700 in its account.

The rest of Rs 300 goes to the agent or broker who has sold the policy, as in the current system, we have to buy the policy through an agent or aggregators.

The same system applies to health and general insurance policies where the commission structure is around 19%.

As a result, for the last 1-2 years, insurance premiums have been significantly increased and almost became unbearable for ordinary people, especially in the case of health insurance policies.

Implementing Bima Sugam Portal will reduce the percentage and bring it down upto 5%, where insurance companies could invest more on behalf of the insurer.

Earlier, IRDA had also directed the insurance companies to make a road map, and as a result, Bima Sugam has come out to be a game-changer tool.

In terms of term insurance policies, they could also give on-spot discounts directly to the customers who buy the policy.

Bima Sugam Portal login Process :

IRDAI needs to give information about logging in and accessing all the insurance products in Bima Sugam. We will update you once we get the actual procedure.

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Bottom Line

Implementing Bima Sugam Portal will significantly reduce the premium rates in all insurance policies, whether health, vehicle or life insurance.

With a common platform, we, the users, also have options to buy policies for our choice from a wide range of products.

After-sales service and claim settlement will get more simplified and user friendly as IRDA will have a direct interference.

Prasun Dey

Myself Prasun Dey , a Passionate Blogger , Affiliate Marketer & Blog Content Writer. I maintain concise & error-free writing as a blog writer. I can take up my creative ideas with any of the topics to write a new article that will add value to my readers.

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