IRDAI & BIMA TRINITY (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     27th April 2024        
output themes

Context: The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to price Bima Vistaar, its ambitious all-in-one affordable mass product aimed at the rural areas of the country, at Rs 1,500 per policy.

Insurance Regulatory and Development Authority of India (IRDAI)

  • About: IRDAI is an autonomous and statutory body responsible for managing and regulating the insurance and reinsurance industry in India.
  • Establishment: Under an Act of Parliament in 1999, IRDAI operates independently to oversee the functioning of insurers and protect the interests of policyholders.
  • Organizational Structure: Comprises a 10-member body, including a chairman, five full-time members, and four part-time members.
  • Headquarter: In Hyderabad.
  • Functions: Ensuring policyholders' interests are safeguarded,

o Fostering the rapid and orderly growth of the insurance industry,

o Facilitating the prompt settlement of genuine claims, establishing an effective mechanism for grievance redressal, and

o Promoting fairness, transparency, and orderly conduct in financial markets related to insurance.

Bima Trinity

  • About: It is the result of the initiative by IRDAI in late 2022 in setting up a committee to explore and recommend on how to bring about synergies in the working and operations of insurance companies.
  • Three Component:

o Bima Sugam: A centralized platform integrating insurers and distributors to offer a one-stop shop for customers. 

o Bima Vistar: A comprehensive bundled insurance product covering life, health, property, and casualty or accident risks. 

o Bima Vaahaks: A women-centric workforce deployed at the grassroots level to promote insurance awareness and facilitate the adoption of composite insurance products like Bima Vistar.