Page 9 - Insurance Times November 2023

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Discussions on the 'affordable' pricing
IRDAI Chief urges stakeholders to harness surety
of the product are on the last legs and
bonds the inclusion of some riders as added
Asserting that the current Bank Guarantee capacity of banks is insufficient to features are being worked out, the of-
meet the credit demand for infrastructure development in the next five years, ficial said.
IRDAI Chairman Debasish Panda has called upon stakeholders to come to-
gether to tap the rich potential of "Surety Bonds" in meeting the gap in Bima Vistaar will have simple and
easily understandable terms and
demand.
conditions, besides taking complete
The current regulatory framework (for Surety Bonds) presents the general advantage of digital advancements.
insurance industry with a unique opportunity to diversify their portfolio and
play an important role in nation-building, Panda said at a CII Roundtable in Bima Vistaar will have simple and
the capital. easily understandable terms and
conditions. It will also take complete ad-
The Roundtable saw participation from senior officials from the Finance Min-
vantage of digital advancements and is
istry, the National Highways Authority of India (NHAI), representatives from
several insurance companies, the World Bank, other public and private banks, likely to have a provision where
the claim can be verified digitally and
infrastructure companies, reinsurers, and insurance brokers.
the settled amount can be credited to
Panda highlighted that India is expected to spend about Rs. 100-lakh crore on
the beneficiaries' account automati-
infrastructure through the National Infrastructure Pipeline in the next five cally.
years. This requires bank guarantees of about Rs. 90-lakh crore in the next
five years, which banks currently do not have capacity for. Latest technological developments such
This is where surety bonds need to step in to complement bank guarantees, as Artificial Intelligence (AI) and Ma-
he noted. This is important as India is estimated to become the third-largest chine Learning (ML) are being used to
country with infrastructure activity by 2030, according to Panda. create a digital platform to reach the
last mile in rural and hitherto uncov-
Bima Vistaar, in final stages dustry," a senior official of the IRDAI ered areas to ramp up insurance pen-
told. etration.
Bima Vistaar, a first of its kind all-in-
one affordable insurance product offer- This comprehensive, standardised cover The rollout of Bima Vistaar will build
ing life, health and property cover is was proposed by IRDAI Chairman upon the success of the Bank Mitra
likely to be launched soon. Debashish Panda as part of a series of model, which played a pivotal role in

"The product is in the final stages of reforms aimed at realising the achieving the Centre's financial inclu-
design based on discussions with Life and regulator's vision of providing cover to sion programme Pradhan Mantri Jan
General Insurance Councils and the in- everyone by 2047. Dhan Yojana (PMJDY).

The Insurance Times November 2023 9