Bajaj Allianz Life Leads with Bima-ASBA for Insurance Premium Payments
Bajaj Allianz Life Insurance has launched the Bima-ASBA facility, a move introduced by the Insurance Regulatory and Development Authority of India (IRDAI).
The company’s implementation of Bima-ASBA makes it the first insurance provider to do so.
Bima-ASBA utilizes the Unified Payments Interface’s One-Time Mandate (OTM).
With this system, policyholders can authorize the blocking of funds, up to Rs200,000 (approximately $2,306), in their bank accounts.
These funds are debited only after the underwriting process completes and the insurance proposal is accepted.
If the application is not processed within 14 days or is rejected, the blocked amount is automatically returned to the customer’s account.
Bajaj Allianz Life illustrates that this ensures policy buyers’ funds continue to earn interest until their policy is confirmed.
This process was launched with the assistance of its payment partners.
Tarun Chugh, MD and CEO of Bajaj Allianz Life, stated, “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. At Bajaj Allianz Life, our Customer First promise inspires us to innovate continuously, and Bima-ASBA aligns with this focus.”
In August 2024, Bajaj Allianz Life, a collaborative venture between Bajaj Finserv and Allianz SE, established a bancassurance agreement with HSBC India.
This update is provided for informational purposes and is not financial advice.
