IRDAI Revives Bid to Launch Bima Sugam; General, Life Insurance Cos to Hold Equal Stake: Sources

Bima Sugam is a standardized and simplified insurance product that was first introduced by the Insurance Regulatory and Development Authority of India (IRDAI) in 2013. However, due to lack of interest from insurance companies, the product was not launched.

Now, according to sources, IRDAI has revived its bid to launch Bima Sugam, and this time, both general and life insurance companies will hold an equal stake in the venture. The idea is to create a simple and easy-to-understand product that can be sold to customers without the need for extensive documentation or complex processes.

The new Bima Sugam is expected to cover a range of risks, including accidental death, permanent disability, hospitalization expenses, and critical illness. The product will be sold through both online and offline channels, with a focus on reaching customers in rural areas.

The equal stakeholding by general and life insurance companies is expected to encourage collaboration and promote a wider reach of the product across the country. The launch of Bima Sugam is also expected to increase insurance penetration in India, which is currently low compared to other countries.

However, there is no official confirmation from IRDAI on the revival of Bima Sugam or the equal stake holding by insurance companies at this point.

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