‘Bima-ASBA’ facility is being started from March 1 for insurance premium payment. Under this, policyholders will be able to block the premium amount in their bank account, which will be deducted only when the policy is issued.
Insurance regulator IRDAI has directed life and health insurance companies to start the ‘Bima-ASBA’ facility from March 1. Under this, policyholders will be able to block the premium amount in their bank account, which will be deducted only when the policy is issued.
As per the rules, the premium should be paid only after the decision to accept the insurance proposal is communicated to the customer. Companies have been allowed to use UPI One Time Mandate (UPI-OTM) to facilitate the transaction of insurance premium.
This process has been named ‘Insurance-ASBA’. It can be used to block the premium amount, the limit of which will be decided by the National Payments Corporation from time to time. This facility is just like the amount is ‘blocked’ while applying for an IPO in the stock market. The amount is deducted only when the IPO is allotted.
What is Insurance-ASBA
Through ‘Insurance-ASBA’, customers can block the amount in their bank account for insurance premium payment. This ensures that the amount remains available in the account, but the payment is made later. Insurance companies will have to compulsorily provide this facility for life and health insurance policies. Insurance companies have been asked to start it by March 1 and provide Insurance-ASBA facility.
Gig workers to get health scheme benefits from June
Temporary employees (gig workers) providing services through e-commerce companies and digital platforms will start getting the benefit of health services under the Pradhan Mantri Jan Arogya Yojana by June. The Union Ministry of Labour and Employment has started work on this.
Cards will be issued to temporary employees registered on the e-Shram portal. Through the card, the Ministry of Health will provide the benefit of medical services to these employees.
Benefits of EPFO pension scheme will also be available: Along with giving the benefit of health insurance coverage, the Ministry of Labor is working towards giving these workers the benefit of services related to the Employees Provident Fund Organization (EPFO). The internal committee formed for this has prepared a proposal, which will soon be sent for cabinet approval. Sources associated with the ministry say that this scheme can be implemented by the end of this year or even before that.
