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.

News Source: The Hindu