Introducing Bima Sugam

Latest Context:

The Insurance Regulatory and Development Authority of India (IRDAI) has established a steering committee to oversee the development of its ambitious online platform called 'Bima Sugam.'

What is Bima Sugam? 

Bima Sugam is an online platform designed to make insurance accessible and convenient for everyone. It aims to simplify the insurance process and will be connected to India Stack.

Key Features of Bima Sugam:

• One-Stop Shop: Customers can explore and choose insurance policies from various companies on this platform.
• All-Inclusive: Bima Sugam will offer a wide range of insurance options, including life, health, and general insurance (such as motor and travel coverage).
• Streamlined Process: It will digitize every aspect of insurance, from policy purchase to renewals, claims, and even agent and policy portability.
• Customer Support: The platform will provide assistance and information to customers regarding their insurance queries.

Role of Bima Sugam:

• This platform will serve as a centralized hub for policyholders to manage their insurance coverage.
• It will provide end-to-end solutions, including purchasing policies, servicing them, and processing claims.

Benefits and Utility (Bima Sugam):

• Bima Sugam will enable insurance companies to access verified and up-to-date data from various sources in real-time.
• It will serve as an interface for intermediaries and agents to sell policies and offer services to policyholders, reducing paperwork.

Stakeholders (Bima Sugam):

Ownership of Bima Sugam Platform: Life insurance and general insurance companies will each hold a 47.5% stake, while brokers and agent bodies will collectively own 5%.

About IRDAI:

• IRDAI, established in 1999, is a regulatory body focused on safeguarding the interests of insurance customers.
• It operates under the IRDA Act 1999 and falls under the jurisdiction of the Ministry of Finance.
• IRDAI oversees and promotes the development of the insurance industry while monitoring related activities.

About India Stack:

• India Stack comprises a set of Application Programming Interfaces (APIs) that enable governments, businesses, startups, and developers to utilize a unique digital infrastructure to address India's challenges related to identity, data, and payments.
• Its goal is to facilitate presence-less, paperless, and cashless service delivery.

Key Features of India Stack:

• Digital transactions using India Stack often have lower transaction costs compared to traditional methods, benefiting businesses, consumers, and the government.
• It aims to bridge wealth gaps and build an efficient digital economy that drives economic growth and social development.

Components of India Stack:

• Key components include Aadhaar (a unique biometric-based identification system), Unified Payments Interface (UPI) for instant digital payments, and Digital Locker for secure storage of personal documents.

Question: What is the primary aim of 'Bima Sugam'?

a. To make insurance policies complex and challenging for customers

b. To simplify and make insurance accessible to everyone

c. To create a platform for purchasing luxury goods

d. To promote traditional insurance methods

Correct Answer: b. To simplify and make insurance accessible to everyone

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