Daily Current Affairs : 25-March-2024

The Insurance Regulatory and Development Authority of India (IRDAI) has lately authorized the launch of Bima Sugam, an innovative online insurance marketplace. This platform is designed to simplify the technique of purchasing, selling, and servicing coverage policies, including settling claims. With its user-friendly approach, Bima Sugam aims to make coverage greater on hand and efficient for everybody.

Features of Bima Sugam

Bima Sugam operates like an e-trade platform, offering numerous key benefits:

  • Digital Convenience: Insurance businesses can provide their merchandise immediately on this platform, permitting customers to enjoy a whole digital enjoy.
  • Paperless Transactions: Customers can get admission to their policies—whether or not for life, health, or non-life insurance—via a unmarried software, eliminating the trouble of paperwork.
  • Cost-Effective Options: By lowering commissions paid to intermediaries, Bima Sugam may cause lower charges for policyholders, making insurance greater lower priced.
  • Unified Services: The platform centralizes coverage issuance, claim settlement, and carrier requests, improving transparency and collaboration inside the insurance zone.

About IRDAI

The IRDAI is established in Hyderabad and turned into mounted in 1999. As a statutory frame beneath the IRDA Act, 1999, it works under the Ministry of Finance to defend the pursuits of insurance customers. Its foremost responsibilities include:

  • Regulating and growing the coverage industry
  • Implementing initiatives like “Vision Insurance for All,” aiming for complete insurance through 2047
  • Coordinating state-unique allocations to insurers for better marketplace penetration

In 2023, IRDAI delivered the “Bima Trinity,” which incorporates Bima Sugam, Bima Vistar, and Bima Vaahaks to enhance coverage sports.

The Insurance Sector in India

Despite being the 10th biggest coverage marketplace globally, India faces challenges with low insurance penetration, presently at 4.2%, and an coverage density of most effective $91 in 2021. However, the sector is predicted to grow rapidly in the coming decade. Key factors encompass:

  • Significant boom forecasted by way of the Economic Survey
  • Potential upward thrust to the sixth biggest coverage market via 2032

Important Points:

Launch of Bima Sugam: Approved by IRDAI to simplify insurance processes.

Digital Marketplace: Functions as an e-commerce platform for insurance products.

Paperless Transactions: Customers can manage life, health, and non-life policies in one app.

Cost Reduction: Lower commissions for intermediaries may lead to decreased premiums for policyholders.

Unified Services: Centralizes policy issuance, claim settlement, and service requests, enhancing transparency.

About IRDAI: Established in 1999, operates under the Ministry of Finance to protect insurance customers’ interests.

Key Initiatives: Includes “Vision Insurance for All” aiming for comprehensive coverage by 2047.

Insurance Sector Challenges: Low penetration at 4.2% and density of $91 in 2021.

Growth Potential: India projected to rise to the 6th largest insurance market by 2032, with significant growth expected.

Why In News

The Insurance Regulatory and Development Authority of India (IRDAI) has approved the establishment of Bima Sugam, an online insurance marketplace aimed at simplifying the process of buying, selling, and servicing insurance policies, as well as settling claims. This innovative platform is set to enhance customer experience by providing a seamless, digital solution that reduces paperwork and improves accessibility.

MCQs about Bima Sugam

  1. What is the primary purpose of Bima Sugam?
    A. To increase insurance premiums
    B. To simplify the process of buying, selling, and servicing insurance policies
    C. To replace traditional insurance companies
    D. To focus solely on life insurance
    Correct Answer: B. To simplify the process of buying, selling, and servicing insurance policies
    Explanation: Bima Sugam is designed to simplify the process of buying, selling, and servicing insurance policies, making it more accessible and efficient for users.
  2. How does Bima Sugam benefit policyholders financially?
    A. By increasing commissions for intermediaries
    B. By reducing commissions paid to intermediaries
    C. By charging higher premiums
    D. By offering only health insurance
    Correct Answer: B. By reducing commissions paid to intermediaries
    Explanation: Bima Sugam may lead to lower premiums for policyholders by reducing the commissions that intermediaries receive, making insurance more affordable.
  3. Which of the following statements is true about IRDAI?
    A. It is a private organization established in 1990.
    B. It works under the Ministry of Health.
    C. It protects the interests of insurance customers and was established in 1999.
    D. It only regulates life insurance products.
    Correct Answer: C. It protects the interests of insurance customers and was established in 1999.
    Explanation: The IRDAI is a statutory body established in 1999 that works under the Ministry of Finance to protect the interests of insurance customers.
  4. What is the projected rank of India in the global insurance market by 2032?
    A. 10th
    B. 5th
    C. 6th
    D. 3rd
    Correct Answer: C. 6th
    Explanation: India is projected to rise to the 6th largest insurance market globally by 2032, indicating significant growth potential in the sector.

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