Page 20 - Insurance Times April 2023

insurance-selling ecosystem. It will take off from where the
current aggregator portals such as Insurance Dekho,
PolicyX.com etc. have proliferated and provide an enhanced
experience for customers.

The repositories - CDSL and NSDL- will help maintain the
insurance policies of the policyholder and his family digitally.
Policyholders will view their policies in their E-Bima or E-
insurance accounts and file a claim, as required. At the risk
of repetition, it may be reiterated that the availability of all
the information in a single place will make the claim
settlement process convenient for nominees/beneficiaries.
Moreover, the portal will also help individuals who may be
apprehensive about sharing their contact details with
of purchase of insurance products where the preferred
private aggregator portals to obtain premium quotes.
agents or brokers of customers would have an
This portal is the result of innovative use of technology in important role to play.
insurance. This is nothing other than InsurTech which may
To assess the volumes of business brought in by agents;
be described as the technology that lies behind the creation, in life insurance business for example, tied agents remain
distribution and administration of insurance business. the mainstay of the distribution network as more than
58% of business is coming through this channel as
The need for Bima Sugam Portal compared to 29.03% through banks and only 1.58%
through digital channels. So, Indian customers still
This new portal would serve some long-felt needs
repose faith in the distribution network of insurance
in the burgeoning insurance industry in India. They agents though it has numerous shortcomings.
are as follows:
However, much of the growth of life insurance business
First and foremost, this portal would help to stem the takes place due to churning of policies by insurance
tide of increasing complaints from customers regarding intermediaries. Under such circumstances, if customers
mis-selling and lack of transparency. Data available with are empowered to switch agents (agent-portability
the Regulator, IRDAI indicates that banks and insurance facility being provided by the Bima Sugam portal) it will
brokers received 12,300 and 10,800 complaints, compel agents and insurers to take better care of their
respectively, related to mis-selling in the financial year existing customers. This will result in policies being sold
to customers as per their requirement and agents not
2020-21 and that 68% of complaints were rejected in
making a windfall at the expense of misinformed
the same financial year. Lack of transparency in
customers.
communication was contributing to mis-selling.
Thirdly, with technology eliminating distributor margins,
Customers have always had apprehensions in
the customers will benefit by enjoying cheaper
purchasing insurance due to its complex terms and
premiums. It is expected that premiums on the Bima
conditions which were not clarified to them prior to
Sugam platform for Life Insurance should be 25 per cent
sale. Be that as it may, customers would feel more
less and General Insurance should be 10-15 per cent
confident in purchasing insurance from Bima Sugam as
less, respectively. It is likely that the Regulator may also
the portal would be directly monitored by the
provide further discounts for the policies purchased
Regulator.
from the platform to encourage use of this platform.
Secondly, even as the direct online mode of purchase
Lastly, the process of renewals is often quite irksome
would be available in Bima Sugam it must be for customers. Digital processes and less manual
acknowledged that most customers in India do repose intervention should contribute to making the renewal
faith in insurance agents. The human touch is still process fast and seamless for the policyholders and
relevant in the process of sale. In this background, the eliminate the hassles of physical paperwork and visits
Bima Sugam portal will also provide the assisted mode to insurers.

18 April 2023 The Insurance Times