BIMA SUGAM (Syllabus: GS Paper 3 – Economy)

Context: The insurance regulator recently approved the establishment of Bima Sugam, an online insurance marketplace.

Bima Sugam

• About: Bima Sugam will function as an online marketplace for insurance products, allowing insurance companies to sell their offerings while enabling customers to compare and purchase policies conveniently.
• Regulatory Backing: The platform will be supported by regulators, ensuring compliance and reliability for both insurers and customers.
• Coverage: It will host a wide range of insurance products, including life, general, and standalone health insurance, providing customers with diverse options to choose from.
• Accessibility: The platform aims to make insurance products accessible to underserved populations, promoting financial inclusion and security for all.
• Data Integration: Bima Sugam will be integrated with various government databases, insurance companies, and repositories, ensuring seamless data sharing and utilization for enhanced services and offerings.

Features of Bima Sugam:

• E-commerce Platform: Bima Sugam operates as an e-commerce platform facilitating insurance companies to showcase their products digitally, ensuring a seamless experience for customers.
• Paperless Policy Handling: It digitizes the policy issuance process, eliminating paperwork and enabling customers to access all their policies, including life, health, and non-life insurance, through a single application or window.
• Potential Cost Reduction: Bima Sugam aims to decrease commissions paid to intermediaries, potentially leading to more affordable insurance policies and lower premiums for policyholders.
• Unified Service Platform: It provides a centralized platform for policy issuance, claim settlement, and service requests, fostering transparency and cooperation within the insurance industry.