State insurers will be encouraged to tap into MSME clusters under Bima Sugam: IRDAI

New Delhi, Apr 12 (KNN) Bima Sugam is expected to take a couple of months more to formulate and would come into force in about a year, said Debashish Panda, chairman, Insurance Regulatory and Development Authority of India (IRDAI), at the FICCI event held in Mumbai.

He said that the state-lead insurers appointed to tap into MSME clusters in their particular state will be encouraged.

Sugam is a one-stop-shop for all things insurance, including policy purchase and claim settlement; Bima Vistar— parametric bundled insurance products covering health, property, life, and personal accident (product); and Bima Vahak— a taskforce to sell Bima Vistar at panchayat level, will help in penetration.

IRDAI is also looking to issue 20 new insurance licenses to companies.

The regulator is following up with the interested companies to submit the required documentation to fast-track the issue of 20 new applications, he informed.

Earlier this year, the regulator approved the applications of two life insurance companies— Acko Life Insurance Ltd. and Credit Access Life and Insurance Ltd.— and one general insurance company— Kshema General Insurance Ltd.

For life insurance companies, these were the first new approvals since 2011, Panda said, while for general insurance, the last approval was granted in 2017.  (KNN Bureau)