IRDAI is all set to launch an all-in-one insurance product, i.e., Bima Trinity to offer affordable bundled policies that cover multiple risks and provide affordable insurance coverage to customers.
India, with a population of 150 crore+ people and still counting, has undergone many changes and is currently one of the markets with the fastest growth rates. The worldwide outbreak has accelerated the industry’s quick digitalisation, shown an increase in demand, forced the creation of new products, and more. And the insurance section is no exception whatsoever.
The Economic Survey 2022–23 predicts that the insurance market in India will grow at one of the fastest rates in the world over the next ten years.
Despite all of these efforts, the country’s traditional life and health insurance models offer very little coverage. This is because major insurance market players have not expanded into the rural areas where more than 70% of the population resides.
Keeping these factors in mind, IRDA is developing Bima Trinity, an affordable insurance product that will cover health, life, property, and accident risks. By connecting death registries onto a single industry platform, Bima Trinity will protect citizens and speed up claim settlements. The Bima Trinity’s main goal is to increase the availability and accessibility of insurance products throughout India by the IRDAI’s vision of “Insurance for all by 2047.”
What is Bima Trinity?
Bima Trinity is an all-in-one insurance product by IRDAI which will include life, health, and property coverage and is poised to revolutionize the insurance landscape in the country. The three plans included under the Bima Trinity are “Bima Sugam”, “Bima Vistaar”, and “Bima Vaahaks” which aims at providing life, health and property insurance cover to increase insurance penetration in India.
Let’s take a quick brief of these three insurance schemes under the Bima Trinity.
It is an online platform where customers can select a suitable plan from a variety of options provided by different businesses. Based on policy information, this platform will make it easier to settle claims electronically, including mortality and health coverage claims. Bima Sugam will enable people to meet all of their insurance needs, from purchasing the policy to handling claims.
On January 1st, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) will launch “Bima Vistaar,” a revolutionary new insurance product. Policyholders will gain access to Rs 2 lakh in life insurance, Rs 1 lakh in property insurance, and Rs 500 per day of hospitalisation under this product. The annual premium for Bima Vistaar is anticipated to be between Rs 800 and Rs 1,200, making it a cost-effective choice for customers with different income levels. This insurance sub-product will target rural populations in the event of natural disasters, earthquakes, and floods.
The IRDAI added Bima Vahak as an additional project under “Bima Trinity” to broaden its scope and increase its emphasis on women in particular. As Bima Vahaks, women are primarily sought after because of their capacity to build rapport with locals and facilitate the expansion of insurance services throughout various communities. The duties of the Bima Vahak will include many different tasks, such as gathering proposal data, managing KYC submissions and documents, and coordinating and supporting services for claims- and policy-related matters.
Bima Trinity: Where Affordability Meets Accessibility
IRDAI is getting ready to launch Bima Trinity in partnership with general and life insurance companies as part of its Vision Insurance for all by 2047. Let’s understand the ground-breaking initiatives being harnessed by IRDAI to make insurance accessible and affordable.
A Goal for Including Everyone in Insurance:
All three insurance schemes cover a variety of risks, such as those involving the loss of life, health, accidents, and property. People have a variety of insurance options to choose from that are catered to their individual needs, ensuring that they are adequately protected in the areas that matter the most to them. Since they are protected financially from potential losses thanks to this extensive coverage, policyholders can rest easy.
Digital Convenience for Unmatched Accessibility and Simplified Terms:
Insurance companies have chosen to work with individual states to make “Bima Trinity” available to all. In rural areas of India, the three products that make up the Trinity will work to increase awareness of insurance products and to foster a culture of trust. Insurance companies are working with state governments to create insurance plans at the state level, analogous to what has been carried out by the banking industry.
The provision of affordable insurance coverage to a variety of customers is one of the main goals of Bima Trinity. The topic of pricing has come up a lot, and insurance providers are eager to provide this service at a competitive price. The regulator’s goal of making insurance accessible to everyone is consistent with this commitment to affordability. The programme encourages more people to utilise its advantages and secure their future against unforeseen events by lowering the financial burden associated with insurance coverage.
Power of Technology in Promoting Inclusivity and Equality for All:
The launch of Bima Trinity will make use of cutting-edge technological developments like artificial intelligence (AI) and machine learning (ML) to build a strong digital platform. Through this platform, insurance penetration will be increased in rural and underserved areas, ensuring that even the most remote regions of India have access to complete coverage. To increase insurance penetration in rural and previously untapped areas, modern technological advancements like artificial intelligence (AI) and machine learning (ML) are being used to build a digital platform.
Fostering the True Potential Of Women with a Dedicated Distribution Model:
With a primary focus on underserved rural areas, this novel strategy will see women, including members of Self-Help Groups, appointed as “Bima Vahaks.” IRDAI thinks that female ‘Vahaks’ will be better positioned to persuade female members of rural households about the value of affordable social security and the necessity of signing up for Bima Vistaar. The duties of Bima Vahak will include many different tasks like gathering proposal data and KYC documents, managing submissions, coordinating policies, and supporting claim-related services.
Through the trinity of Bima Sugam, the Bima Vistar, and the Bima Vahak, the IRDAI seeks to raise awareness of and promote the use of insurance. With its accessibility, ease of use, and dedication to going the extra mile, Bima Trinity is well-positioned to transform insurance from a commodity into a fundamental right for every citizen.