BIMA TRINITY - An initiative for a fully insured India by 2047

The ejusdem generis rule states that the meaning of any general term depends upon the specific words that go before it. The ejusdem generis rule is a construction principle based on context. It provides that general words that follow particular words refer to things of the same kind’ (‘ejusdem generis’) as the particular words.

- Prof. ESNB Srinivas M.Sc., MBA, FIII, PGDCS, FCOT. Assistant Professor -Senior Scale at UNext-Manipal Academy of BFSI - Bangalore Campus

In the earlier MALGUDI days of RK. Narayan, when people wanted to go for a festival shopping, they needed to travel to different markets situated at different geographical locations -sometimes even to another town, by spending more time and money. Now time has changed, and one can complete the entire shopping at a single shopping mall saving all the time, energy, and money.

Buying insurance in India is still in MALGUDI days model only. If I want to buy multiple insurance policies viz., Life insurance policies, Investment policies, Motor insurance for the two or three Two-wheelers and one or two cars of my family and health insurance policies for my parents, in-laws and for my own family-I need to visit nearly half-a-dozen to ten insurance companies of life, General and health. I need to repeat the same exercise at the time of renewal also by investing more time and effort.

However, thanks to the new initiative by Insurance Regulatory and Development Authority of India (IRDAI), this tedious job of buying insurance is made simpler with the introduction of a concept called BIMA TRINITY- a game changer and a revolution in the entire buying process of insurance in India. It is a part of a broader campaign called "Insurance for All by 2047"- under mission Viksit Bharat of Government of India.

Backdrop:

Currently the insurance Penetration in India stands at 3.7 % of GDP (FY 2024-IRDAI Annual Report)- as against the global average GDP of 7%.

The reasons are many, but few are mentioned below.

❖ Wrong selling of Life insurance products by Agents without explaining full benefits to the customer.

❖ forced selling of insurance policies by banks without the consent of customer.

❖ Wrong positioning of the products like ULIPs as investment products.

❖ Unprofessional selling by Brokers -not taking the consent of the buyer before selling the product.