Bajaj Allianz Life Insurance, a leading Indian private insurer, has introduced the Bima-ASBA facility, a new initiative by the Insurance Regulatory and Development Authority of India (IRDAI) aimed at streamlining the insurance premium payment process. As the first insurance company to adopt this facility, Bajaj Allianz is leveraging the Unified Payments Interface’s One-Time Mandate (OTM) to allow policyholders to block funds up to Rs200,000 ($2,306) in their bank account.
The Bima-ASBA system ensures that the blocked amount is only debited after the underwriting process is complete and the insurance proposal is accepted. If the application is not processed within 14 days or if the proposal is declined, the blocked amount is automatically released back to the customer’s account. This means that policy buyers’ funds can continue to earn interest until the policy issuance is confirmed.
The introduction of Bima-ASBA is a significant step towards simplifying the insurance purchase process and building customer trust. According to Tarun Chugh, MD and CEO of Bajaj Allianz Life, “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.
Bajaj Allianz has introduced this process in collaboration with its payment partners, demonstrating its commitment to innovation and customer-centricity. The company’s “Customer First” promise is reflected in its efforts to continuously innovate and improve the customer experience. The introduction of Bima-ASBA is a testament to this promise and is expected to enhance the overall insurance purchase experience for policyholders.
The partnership with payment partners is also a key aspect of this initiative, enabling seamless and secure transactions for customers. With Bima-ASBA, Bajaj Allianz is poised to set a new standard for the life insurance industry in India, prioritizing customer convenience, security, and flexibility. As the first company to adopt this facility, Bajaj Allianz is taking a lead in innovation and customer satisfaction, and other insurers are likely to follow suit.