Lok Sabha Question No. 154 (STARRED), answered on 2023-02-13
Subject: Bima Sugam Portal
Ministry: FINANCE
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO. *154

TO BE ANSWERED ON MONDAY, FEBRUARY 13, 2023/MAGHA 24, 1944 (SAKA)

## BIMA SUGAM PORTAL

## *154. SHRI N.K. PREMACHANDRAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government proposes to introduce new platform for insurance services named as 'Bima Sugam', if so, the details thereof and the action taken thereon;
- (b) whether the Government proposes to limit the administrative expense and agent commission upto 30 per cent in the new policy for insurances, if so, the details thereof;
- (c) the initiatives taken by the Government to protect the interest of General Insurance Agents and Life Insurance Agents when this new policy is implemented in insurance sector;
- (d) whether the Government proposes to introduce any new scheme in insurance sector so as to promote the private sector, if so, the details thereof; and
- (e) whether the Government has conducted any study to assess its impact on the livelihood of the General Insurance Agents and Life Insurance Agents when the new scheme is introduced for the insurance services and if so, the details and the outcome thereof?

## ANSWER

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

- (a) to (e): A Statement is laid on the Table of the House.

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## Statement as referred to in reply to part (a) to (e) of Lok Sabha Starred Question No. *154 for 13.2.2023 regarding 'Bima Sugam Portal' raised by Shri N.K. Premachandran, Hon'ble Member of Parliament

(a)  to  (e):  Insurance  Regulatory  and  Development  Authority  of  India  (IRDAI)  has  been established under IRDA Act, 1999, to protect the interests of holders of insurance policies, and to regulate, promote and ensure orderly growth of the insurance industry. Its regulations apply uniformly to both public and private sector entities.

IRDAI has stated that it conducts public consultations for all the regulations before notification and suggestions/ comments received are examined and considered. After such consultations, the proposed regulation is put up in public domain on IRDAI website inviting comments which are also examined and considered.

As  regards  Bima  Sugam  portal,  IRDAI  has  informed  that  in  order  to  address  the  existing protection  gap  in  India  across  life,  health  and  general  insurance  businesses  and  based  on consultations held with various stakeholders and subject matter experts, a need has emerged for setting up an insurance market infrastructure where the insurers, distribution networks and the policyholders would virtually meet across a seamless digital platform. Bima Sugam would be such platform which is expected to improve accessibility and ease of insurance purchase to policyholders on one hand and serve as a readymade digital platform for insurers and distribution network on the other.

IRDAI has further informed that it had issued an exposure draft on amendments proposed to Expenses  of  Management  and  Commission  Regulations  for  seeking  comments  of  all stakeholders.  Pursuant  to  the  consultation  process,  the  draft  regulations  were  overhauled factoring  the  comments  received  and  IRDAI  again  issued  exposure  drafts  of  these  two regulations on 23 rd  November, 2022 seeking fresh comments from all stakeholders.

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