On Feb. 18, IND INS launched Bima-ASBA payment mechanism.
IND INS introduced one-time mandate for blocking amount towards premium via unifiedpayments interface for issuance of insurance policies, known as Bima-ASBA.
The master direction (#216672) specifies requirements for premium payment/deposit.
To facilitate smooth transactions of payment of premium, a facility of the unified payments interface (UPI) one time mandate (OTM) is enabled to be used by insurers.
This feature allows users to block funds in their bank accounts for specific transactions, ensuring availability of funds while deferring actual payments.
This service is useful in multiple scenarios where the customer prefers to authorize a block on funds without immediate debits, facilitating smoother transaction processing.
The circular covers obligations of the insurer, and procedure for OTM through UPI.
Effectiveness
All insurers shall offer Bima-ASBA facility to prospects and customers by Mar. 1, 2025.
