IRDAI has introduced a new system to simplify the system of paying premium of health or life insurance. This new system of paying insurance premium is Insurance-ASBA. With its help, people will find it easier to pay their insurance premium.
New payment system: Many people find it very difficult to pay their insurance premium. In such a situation, the Insurance Regulatory and Development Authority of India (IRDAI) has found a solution to this problem. Actually, IRDAI has introduced a new system to simplify the system of paying health or life insurance premium. This new system of paying insurance premium is Insurance-ASBA. With its help, people will find it easier to pay their insurance premium.
IRDAI said that the new system allows policy holders to block funds in their bank accounts for premium payment. This new system will increase convenience and reduce payment delays. The new system will come into effect from March 1.
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What is Insurance-ASBA?
Under the new system of Insurance-ASBA i.e. Insurance-Application Supported by Blocked Amount, policy holders are enabled by insurance companies to block a certain amount in their bank accounts through UPI before the insurance proposal is accepted. The amount will be debited only after approval by the customer. On the other hand, if there is no approval, the amount will be automatically unblocked.
On the other hand, if the insurer does not accept or reject the policy, the funds will remain in the policyholder’s account. Under the new system, money is deducted only after the policy is issued. The maximum time for the amount to remain blocked is 14 days. After this, money is deducted from the account upon acceptance.
You will have to choose the option of Insurance-ASBA at the time of applying for the insurance policy. In the form, you will have to choose the option to approve blocking of the premium amount. The insurance company will send a request to your bank to block the required amount in your account. After this, the amount is debited from the account only after the customer’s approval.
