Context:
The Insurance Regulatory and Development Authority of India (IRDAI) has approved eight principle-based regulations including the much-awaited Bima Sugam marketplace.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- About Insurance Regulatory and Development Authority of India
- About Bima Trinity
- Approvals made by IRDAI
About Insurance Regulatory and Development Authority of India:
- Establishment: IRDAI was founded in 1999 as a regulatory body to safeguard the interests of insurance customers.
- Statutory Body: It operates as a statutory body under the IRDA Act 1999 and falls under the jurisdiction of the Ministry of Finance.
- Regulatory and Development Authority: IRDAI is responsible for regulating and fostering the development of the insurance industry in India.
- Monitoring Activities: The authority closely monitors insurance-related activities to ensure compliance with regulations and standards.
- Legal Framework: The powers and functions of IRDAI are defined by the IRDAI Act, 1999 and the Insurance Act, 1938.
About Bima Trinity:
- IRDAI is also planning to launch Bima Trinity – Bima Sugam, Bima Vistar, Bima Vaahaks – in collaboration with general and life insurance firms to make insurance activities hassle free.
- Bima Trinity is a multifaceted insurance initiative that encompasses key components: Bima Sugam, Bima Vistar, and Bima Vaahaks.
- These components work together to provide simplified insurance processes, comprehensive coverage, and women-centric empowerment.
Bima Sugam:
- Bima Sugam is a unified platform that brings insurers and distributors together.
- It offers customers a convenient portal for purchasing policies, making service requests, and settling claims.
- This platform streamlines the insurance experience by integrating various functions into one accessible platform.
Bima Vistar:
- Bima Vistar is a comprehensive bundled policy that covers various aspects of life, health, property, and accidents.
- It provides defined benefits for each risk category, ensuring prompt claim payouts without the need for surveyors.
- By offering a wide range of coverage, Bima Vistar aims to provide customers with comprehensive protection against various risks.
Bima Vaahaks:
- Bima Vaahaks are a women-centric workforce operating at the Gram Sabha level.
- Their main objective is to educate and convince women about the advantages of comprehensive insurance, specifically Bima Vistar.
- Bima Vaahaks address concerns, emphasize the benefits of insurance, and empower women to enhance their financial security.
- By focusing on women, Bima Vaahaks aim to increase awareness and access to insurance among this demographic.
Approvals made by IRDAI
The Insurance Regulatory and Development Authority of India (IRDAI) has been proactive in implementing regulatory changes to strengthen the insurance sector and safeguard the interests of policyholders. Here’s a summary of the key approvals made by IRDAI:
Bima Sugam – Insurance Electronic Marketplace Regulations, 2024
- Objective: To establish a digital public infrastructure named Bima Sugam.
- Purpose: Empower and safeguard policyholders’ interests and achieve the vision of “Insurance for All” by 2047.
Corporate Governance for Insurers Regulations, 2024
- Objective: Establish a robust governance framework for insurers, clearly defining the roles and responsibilities of the board and management.
- Significance: This marks the first instance where governance aspects under existing guidelines have been notified in the form of regulations, aiming to enhance transparency and accountability within the insurance sector.
Insurance Products Regulations, 2024
- Objective: Consolidate six existing regulations into a unified framework.
- Purpose: Enable insurers to respond more swiftly to evolving market demands, enhance the ease of conducting business, and boost insurance penetration.
Registration and Operations of Foreign Reinsurers Branches & Lloyd’s India Regulations, 2024
- Objective: Consolidate two regulations to foster the systematic development of the reinsurance sector in India.
- Purpose: Promote orderly growth, harmonize the existing legal and regulatory framework, and attract foreign reinsurance players to establish a presence in India.
Other Regulatory Changes:
- Rural Obligations: The unit of measurement for rural obligations has been revised to the gram panchayat.
- Social Sector: The scope of the social sector has been expanded to include cardholders and beneficiaries under various schemes, aiming to extend insurance coverage to a wider demographic.
- Motor Third-Party (TP) Insurance: The unit of measurement for Motor TP has been modified to focus on the renewal of coverage for goods and passenger-carrying vehicles, as well as tractors, streamlining the insurance process and ensuring comprehensive coverage for policyholders.
-Source: The Hindu
