Bajaj Allianz Life has become the first insurer to go live with the BIMA-Application Supported by Blocked Amount facility (Bima-ASBA).
Bima-ASBA is the Insurance Regulatory and Development Authority of India’s (IRDAI) initiative to bring operational ease, enhance policyholder convenience, ensure greater transparency, and simplify the insurance premium payment process.
Bima-ASBA is a significant step forward in making premium payments smoother and more customer-friendly.
Under this IRDAI initiative, policyholders can opt for UPI’s One-Time Mandate (OTM) and authorize the blocking of a specified amount (up to Rs 2 lakh) in their bank account via UPI. The amount will be debited only after the insurance company completes the underwriting process and decides to accept the proposal.
If the application is not processed within 14 days or the proposal is not accepted, the blocked amount is automatically released back to the customer. This initiative ensures that the policy buyer’s funds remain in their bank account and continue to gain interest till the time the policy issuance is confirmed.
Bajaj Allianz Life, in partnership with its payment partners, has successfully launched this process, the insurer said in a release.
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Speaking on the development, Tarun Chugh, MD & CEO, Bajaj Allianz Life, said, “In line with the vision of ‘Insurance for All by 2047,’ IRDAI is taking commendable steps toward enhancing transparency, trust, and digitization for customer convenience. These measures are designed to further benefit customers by strengthening the insurance ecosystem. We welcome Bima-ASBA as a significant step in this direction.”
“The life insurance industry has been working to be more agile, simplify processes and build customer trust, and Bima-ASBA will further strengthen these efforts by adding a layer of security, confidence, and flexibility for policyholders. By allowing customers to block their premium amount instead of paying upfront, it addresses concerns about refunds if a policy isn’t issued. At Bajaj Allianz Life, our Customer First promise inspires us to innovate continuously, and Bima-ASBA aligns with this focus,” he said.
With this launch, Bajaj Allianz Life continues to reinforce its position as a customer-centric insurer, driving digital-first innovations for a seamless insurance journey, the release said.
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