New Rule: The new month has started. Along with this, many changes have also come into effect. In this episode, changes related to insurance premium will also come into effect from March 1. Under this, policyholders will get a new facility in Unified Payments Interface (UPI). Through this, customers will have ease in paying the premium of the policy. Because Unified Payments Interface – One Time Mandate (UPI-OTM) will be used in the process of Insurance-ASBA. The new facility will come into effect from today, March 1.
What is the new rule of IRDAI?
Insurance Regulatory and Development Authority (IRDAI) made a big announcement for policyholders in February. Under this, insurance companies were made mandatory to start the new facility of Insurance-ASBA. Under the new rule, all life and health insurance companies will have to implement Insurance-ASBA. Also, for the new facility, the new system has to be implemented by partnering with the banks. Let us tell you that in the new facility Insurance-ASBA, the premium amount will be blocked in the bank account of the policyholders. This will be deducted only when the insurance policy gets approved.
Benefits of Insurance-ASBA!
- Â There will be no tension regarding payment of the policy. That means policyholders will not have any pressure regarding premium payment in advance.
- Â The insurance premium payment of the customers will be deducted when the insurance policy gets approved.
- Â The Insurance-ASBA facility will be available first to the personal policyholders.
- Â If the insurance company does not approve the application, then the customers will not need any refund process.
How will Insurance-ASBA work?
Insurance-ASBA (Automated Subscription Based Application) is a new facility for insurance premium payment. In this, customers do not have to pay the premium of the insurance policy first. Rather, the bank account of the customers is blocked in reverse. This keeps the premium amount safe. Earlier, the facility of Insurance-ASBA was used in the stock market. Under the new facility, if the insurance company approves the customer’s application, then the money will be deducted from the bank account. By implementing this facility in the insurance sector, customers will get the convenience of buying insurance policy without making immediate payment.
