The Insurance Regulatory and Development Authority of India (IRDA) issued draft regulations on Bima sugam. But before we start with the news, let us first get to know about the Insurance Regulatory and Development Authority of India (IRDA).
Insurance Regulatory and Development Authority of India (IRDA) issued draft regulations on bima sugam.
IRDA is a statutory body formed under the IRDA ACT, 1999. Its purpose is the overall supervision and development of the insurance sector in India. Lastly its key objectives include protecting the interest of policy holders, Speedy and orderly growth of insurance industry and Speedy settlement of genuine claims.
Bima Sugam
Now coming back to news and let us discuss about what is the Bima Sugam.
Bima Sugam insurance electronic market is a robust digital public infrastructure with Open Standards and interoperable platform. It shall be a one stop solution for all Insurance stakeholders, vis-a-vis customers, insurers, intermediaries or Insurance intermediaries.
> The Regulatory Framework for Bima Sugam
The regulatory framework for Bima Sugam includes, the framework will be formed under Section 8 of the company's act 2013 as a not for-profit company. Shareholding of the company will be widely held amongst Life, General and Health insurers with no single entity having a controlling stake. Also, there will be consent based architecture for the services. The consumers will not be charged for availing services of Bima Sugam. Lastly, the IRDAI would nominate two members to the board of the company.
> Significance of Bima Sugam
Bima Sugam will enable insurance companies to easily access the Validated and Authentic data from multiple touch points in real time. It will further help to increase Insurance penetration and density by enhancing the availability, accessibility and affordability of insurance products and services. Talking about the insurance penetration, it is measured as a percentage of insurance premiums to GDP. An insurance density is calculated as the ratio of the premiums to population per capita premium. Lastly, it promotes transparency, efficiency and collaboration across the entire Insurance value chain.
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