Bajaj Allianz Life Insurance Company (BALIC) has gone live with the BIMA- Application Supported by Blocked Amount facility (Bima-ASBA), which will bring operational ease, enhance policyholder convenience, ensure greater transparency, and simplify the insurance premium payment process.
BALIC is the first insurer to go live with the aforementioned facility, per the company’s statement.
Under Bima-ASBA, which is an Insurance Regulatory and Development Authority of India’s (IRDAI) initiative, policyholders can opt for UPI’s One-Time Mandate (OTM) and authorise the blocking of a specified amount (up to ₹2 lakh) in their bank account via UPI.
The amount will be debited only after the insurance company completes the underwriting process and decides to accept the proposal.
If the application is not processed within a period of 14 days or the proposal is not accepted, the blocked amount is automatically released back to the customer.
Earn interest
The life insurer said this initiative ensures that the policy buyer’s funds remain in their bank account and continue to earn interest till the time the policy issuance is confirmed. BALIC has launched this process in partnership with its payment partners.
Tarun Chugh, MD & CEO, Bajaj Allianz Life, noted that the life insurance industry has been working to be more agile, simplify processes and build customer trust, and 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,” he said.