IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024 Exposure Draft

IRDAI vide Circular dated February 13, 2024, issued an Exposure Draft on IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations 2024 (‘Exposure Draft’) with the primary objectives of empowering and safeguarding policyholders, increasing insurance penetration in India, and enhancing accessibility. The Exposure Draft aims to establish a Digital Public Infrastructure known as Bima Sugam – Insurance Electronic Marketplace, serving as a comprehensive solution for all insurance stakeholders, including customers, insurers, intermediaries, and insurance agents (‘Company’)

The proposed Regulations would become effective from the date of their publication in the official gazette.

Major highlights in the Exposure Draft

1. Establishment of Bima Sugam – Insurance Electronic Marketplace: The Authority has structured the Marketplace as a Constituted Entity not-for-profit for those entities formed under Section 8 of the Companies Act, 2013, with a primary objective to establish, facilitate, develop, operate, and maintain the Marketplace for providing services to insurance stakeholders.

2. Governance: The Constituted Entity to have a well-documented policy, procedures and governance arrangements such as operational, risk management and internal controls for its functioning. Further, the Board of the Company have been advised to ensure the following:

a. The Marketplace functions in consonance with the objective of these regulations.

b. The decisions of the Board shall reflect the genuine and legitimate interests of insurance stakeholders.

c. A designed System with a High degree of Security, operational reliability, and adequate and scalable capacity shall be adopted.

d. Appropriate Business Continuity Plan shall put in place.

e. To constitute a Risk Management Committee for handling various functions such as identifying, monitoring, mitigating and managing various risks.

3. Appointment of Chairperson and Key Managerial Persons (KMPs): The Constituted Entity is proposed to seek prior approval of the Authority for the appointment, re-appointment, termination, and changes in the terms and conditions of the Chairperson and Chief Executive Officer.

4. Functions, Duties, and Responsibilities: The Constituted Entity is proposed to perform the functions of the Marketplace as well as to facilitate the availability of their products for sale and provide all services related to an insurance policy.

5. Security, Privacy and Participation: The Constituted Entity is proposed to adopt an appropriate security mechanism, advanced technology, and privacy standards in the Marketplace in order to ensure open and fair access.

6. Revenue: The Board of the Constituted Entity is proposed to have a well-documented policy on revenue model which shall be self-sustainable.

A copy of the Exposure Draft is attached herewith for your reference.

Source category: IRDAI

Attachments

• /2024/350_Exposure_Draft_IRDAI_(Bima_Sugam_-_Insurance_Electronic_Marketplace)_Regulations,_2024_(1).pdf
• /2024/350_Format_for_Suggestions_-IRDAI_(BS-IEM)_Reg_2024-_Annexure_-_B.pdf
• /2024/350_DRAFT_IRDAI_(Bima_Sugam-IEM)_Reg_2024-_13_02_2024_-_Annexure-A.pdf