- Bima Sugam-insurance electronic market is a robust digital public infrastructure with open standards and an interoperable platform.
- It shall be a one-stop solution for all Insurance stakeholders vis-a-vis customers, insurers, intermediaries, or insurance intermediaries.
- Regulatory framework for Bima sugam:
- will be formed under Section 8 of the Companies 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.
- Consent-based architecture for the services.
- Consumers will not be charged for availing services of bima sugam.
- IRDAI would nominate two members to the Board of the Company.
- Significance
- It will enable insurance companies to easily access validated and authentic data from multiple touchpoints in real time.
- It will help to increase insurance penetration and density by enhancing the "availability, accessibility, and affordability" of insurance products and services.
- Insurance penetration is measured as the percentage of insurance premiums to GDP, and insurance density is calculated as the ratio of premiums to population (per capita premium).
- Promote transparency, efficiency, and collaboration across the entire insurance value chain.
About IRDAI
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