Understanding Bima-ASBA: Simplifying Insurance Premium Payments
| Key Aspect | Details |
|---|---|
| Why in News? | IRDAI introduced Bima-ASBA, a UPI-based premium payment system for life and health insurance. |
| Effective From | March 1, 2025 |
| Payment Mechanism | One-time UPI mandate (OTM) to block funds until policy approval. |
| Fund Blocking | Amount stays in the account, debited only after insurer's approval. |
| Refund Policy | If the proposal is rejected, funds are unblocked within one working day. |
| Blocking Duration | Maximum 14 days or until underwriting decision is made. |
| Mandatory for Insurers? | Yes, all life and health insurers must offer it. |
| Customer Charges | No extra fees for policyholders. |
| Bank Partnerships | Insurers must collaborate with multiple banks for seamless UPI transactions. |