The Insurance Regulatory and Development Authority of India (IRDAI), as part of its Vision Insurance for all’ by 2047, has allotted states and union territories to every insurer to increase insurance penetration in India.
GS III: Indian Economy
Dimensions of the Article:
- About Insurance Regulatory and Development Authority of India
- IRDAI Vision 2047
- About Bima Trinity
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.
IRDAI Vision 2047
The objective of IRDAI Vision 2047 is to achieve “Insurance for All” by ensuring that every citizen has appropriate life, health, and property insurance coverage, and every enterprise is supported by suitable insurance solutions.
Additionally, it aims to make the Indian insurance sector globally attractive.
Pillars: The vision focuses on three key pillars:
- Insurance customers (Policyholders)
- Insurance providers (insurers)
- Insurance distributors (intermediaries)
- Right Products for Right Customers: Ensuring the availability of appropriate insurance products to meet the specific needs of customers.
- Robust Grievance Redressal Mechanism: Establishing a strong system for resolving customer grievances effectively.
- Ease of Doing Business: Facilitating a business-friendly environment in the insurance sector.
- Adaptive Regulatory Architecture: Aligning the regulatory framework with market dynamics to promote innovation and competition.
- Boosting Innovation: Encouraging innovative practices in the insurance industry.
- Mainstreaming Technology: Embracing technology advancements for efficient operations.
- Principle-Based Regulatory Regime: Transitioning towards a regulatory approach based on principles.
- IRDAI Vision 2047 has the potential to ensure that households across the country have access to affordable insurance policies covering health, life, property, and accidents.
- The vision aims to provide faster claim settlements, sometimes within hours, and additional benefits such as gym or yoga memberships.
- It seeks to enhance customer experience, promote financial security, and drive overall growth in the insurance sector.
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 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 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 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.
-Source: The Hindu