Insurers seek more time to roll out Bima-Asba payment system

Irdai's tight deadline delays adoption of UPI-linked premium blocking facility

- SUBRATA PANDA & AATHIRA VARIER

Insurance companies have approached the Insurance Regulatory and Development Authority of India (Irdai) and sought an extension in implementing its new payment mechanism Bima-Asba (Applications Supported by Blocked Amount), which aims to simplify and streamline the payment process for health and life insurance policies, said multiple sources aware of the development.

In mid-February, Irdai introduced the Bima-Asba facility and mandated insurers to offer this facility, which will enhance convenience and reduce payment-related delays, to the policyholders by March 1. A majority of insurers have yet to go live with this feature.

The companies have initiated discussions with the UPI facility providers to implement Bima-Asba. They are working towards rolling out the feature soon, sources said, adding that the regulator's March 1 deadline was too early and prevented most insurers from meeting it.