All In One policy plan to spread insurance in India

IRDAI is devising a new affordable bundled product to give citizens protection against multiple risks, and seeking to expedite claim settlements by linking death registries onto a common industry platform.

26 May 2023

Context

IRDAI is devising a new affordable bundled product to give citizens protection against multiple risks, and seeking to expedite claim settlements by linking death registries onto a common industry platform.

Image Source: The Hindu

IRDA’s Plan for Affordable and Comprehensive Insurance Coverage in India:

  • The Insurance Regulatory and Development Authority (IRDA) aims to expand insurance penetration in India.
    • Plans include creating a bundled product that covers health, life, property, and accident insurance.
    • Claims settlement process to be expedited by linking death registries onto a common industry platform.
  • Bima Trinity Initiative:
    • RDA’s chief  striving to create an “UPI-like moment” in insurance through a plan worked out with general and life insurance firms that he termed “Bima Trinity”.
    • Bima Sugam platform to integrate insurers and distributors, providing a one-stop shop for customers.
    • Bima Vistar, a bundled risk cover, to offer defined benefits for each risk and faster claim settlements.
  • Swift Claim Settlements:
    • Parametric triggers implemented to assess losses without the need for surveyors.
    • Defined benefits transferred directly to policyholders’ bank accounts.
    • Integration of birth and death registries to expedite claim settlement within hours.
  • Women-centric Workforce:
    • Bima Vaahaks (carriers) to meet with women heads of households to promote composite insurance products.
    • Encouraging women to consider Bima Vistar for financial security during distress.
  • Legislative Amendments and Value-Added Services:
    • Proposed amendments to insurance laws to attract more investments and allow value-added services.
    • Differentiated capital requirements for niche insurers to accommodate specialized players.
    • The amendments will also enable the entry of new players in the form of micro, regional, small, captive players, specialised players, and even composite licences.
  • Formation of State-Level Insurance Committees:
    • IRDA plans to establish State-level insurance committees for effective implementation.
    • Collaboration with State governments to develop district-level insurance plans.
  • Comparison to Banking Sector:
    • Drawing parallels with the banking sector’s differentiated licenses for niche players.
    • Different types of banks catering to diverse geographies and segments of the population.
    • Similar approach in the insurance sector to cater to different regions and population segments.
Additional Information

About Insurance Regulatory and Development Authority of India (IRDAI):

  • An autonomous and statutory body established under the IRDA Act 1999.
  • An apex body that supervises and regulates the insurance sector in India.
  • A 10-member body- a Chairman, five full-time members, and four part-time members appointed by the Government of India.
  • Objective: To protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry in India.
  • Nodal Ministry: Ministry of Finance.
  • Headquarters: Hyderabad.

News Source: The Hindu

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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