Explained: BIMA Sugam, the one-stop platform for your insurance needs

Do you have trouble keeping track of all your insurance premiums? Have you ever forgotten to pay a premium for your car or health insurance? If yes, here is some good news for you. Very soon, you can use BIMA Sugam as a one-stop destination for all your insurance needs. It will be an e-commerce platform, just like Amazon or Flipkart, but for insurance products.

The Insurance Regulatory and Development Authority of India (IRDAI) has already approved BIMA Sugam. IRDAI chairman Debasish Panda told PTI that Bima Sugam should be “a UPI moment” for the insurance industry. “Bima Sugam will be a one-stop shop for buying and selling insurance, for policy servicing, and also, for claim settlement,” he added.

Apart from IRDAI, the platform will be supported by the Life Insurance Council and the General Insurance Council.

How BIMA Sugam will help you

First, you can buy policies, pay premiums, and settle all claims on a single platform. You don’t have to visit the websites of different insurers separately.

Second, you can choose from a host of policies and buy these directly from insurance firms. Agents and intermediaries will also have access to it.

Also read: Irdai pushes for e-insurance accounts, ease of use for customers

Third, there will no longer be a need to maintain a host of physical documents. You can enjoy more privacy, and renewals will be a breeze.

Fourth, the platform will dramatically reduce the commissions paid to intermediaries. That means cheaper premiums and more of your money going into cumulative investment programmes.

Fifth, you can choose a repository to maintain all your insurance policies. If you have all the links stored in one place, claim settlement will become easier for nominees and beneficiaries.

Sixth, the platform will meet all insurance requirements, including those for life, health, motor, travel, etc.

How BIMA Sugam will work

BIMA Sugam will provide you with a Demat E-BIMA or e-insurance account (E-IA). The IRDAI has, however, not provided any details about the fees the platform will charge.

Panda said individual agents and web aggregators will also have access to the portal. “…many people may prefer the assisted mode and can take the help of one of the intermediaries,” he explained.

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Regarding KYC, he said, “…the moment you enter the portal, type your Aadhaar number, (and) the data will auto-populate. The KYC will be done through your Aadhaar number, which will be masked for security reasons.”

Underwriting of a policy can be done in a few easy steps and in a couple of minutes, he said.

“We are trying to mandate that all the policies should go to insurance repositories, who will store details on a permanent basis. It will help in settlement of claims in a paperless manner based on the policy number,” Panda added.

The future of insurance

By making it super easy for customers to buy and deal with insurance, this portal is likely to help boost insurance penetration in the country.

Panda said that by promoting “ease of living” and expanding the “reach of insurance,” this platform “is going to be a game changer.” He added, “It will be a huge facilitator and, I think, with this platform, you will not need to go anywhere physically.”

Also read: ULIP is not efficient; term insurance plus MF is a good alternative

BIMA Sugam may face severe competition from insurance brokers and web aggregators that already provide similar services. However, that is not a bad thing. Fierce competition may result in better deals for insurance buyers in future.