Updated on Dec 28, 2023
Bima Vistaar, the all-inclusive insurance, a special kind of reasonable protection available for different insurance products, including health, property, and life, is likely to be introduced in the first quarter of the next budget year.
As per IRDAI’s statement, the various stages of the product design and other primary aspects of the Bima Vistaar have been finalized, and it is time for the product to be rolled out soon in the first quarter of FY 2025.
Bima Vistaar is a part of the ‘Insurance Trinity’ along with Bima Sugam and Bima Vahak. Bima Sugam is a one-stop digital platform, whereas Bima Vahak is a women-led field distribution product that is part of the insurance trinity.
The rolling out of Bima Vistaar is among the major components to achieving the ‘insurance for all by 2047’ vision of IRDAI by bridging the gaps between insurance products, pricing, and circulation.
The Evolving Landscape of Risks
The landscape of risks is constantly evolving and is dynamic. The sudden volatile changes in a country’s economy bring about such changes. For instance, economic changes can bring about price changes, income changes, technological changes, and so on. This, in turn, may lead to unexpected personal losses as well as losses in business.
Similarly, the challenges in mitigating health risks are also overwhelming. The changes brought about by lifestyle and other habits are major contributors. Poor diet, Smoking, alcohol consumption, and physical inactivity are some risk factors that cause health risks. Moreover, these risks are related to multiple causes, including economic conditions.
Even in terms of property and other diverse fields of insurance, there have been distressing threats and trends. Besides the common theft and burglary threats, your property is under the scanner of fire, natural and man-made disasters, and more.
So, it would help if you had the right insurance tools to safeguard against such evolving risks.
The Limitations of Traditional Insurance
Though traditional insurance policies are popular, they are expensive and come with low coverage when you buy them after a particular age. If you buy these policies when you are young, it may suffice you well. But most such policies are out of the budget of common people trying to acquire them after a certain age. Moreover, they offer fragmented coverage, which is another gap in the traditional insurance sector.
Further, you may have also encountered overlapping policies and insurance gaps. Coverage overlaps may appear due to gaps in policies that the insurer is not willing to fill or take complete accountability for. With several hidden and escape clauses, the situation is common to arise.
This issue is likely to be eliminated with the all-in-one insurance cover as Bima Vistaar is likely to fill the void of inadequate protection against combined risks.
The Concept of All-Inclusive Insurance
The concept of the proposed Bima Vistaar, the all-in-one insurance product, will cover a variety of risks against health, property, and life, among others. Bima Vistaar is a first-of-its-kind product that will make insurance affordable by covering several risks under one platform.
The all-inclusive and comprehensive plan, with its several advantages, will give the assurance of security in terms of your home, health, and life under one policy. It will also make it simple and convenient to acquire an insurance policy at a cost-effective price to cover you against holistic risk mitigations.
With Bima Vistaar, you will be able to address all your insurance concerns in terms of securing the lives of your family members against sudden and unforeseen events with life insurance. It will also address concerns for your health as well as the health of your family members. Moreover, it will also resolve your property risks along with the other two to save your expenses.
Understanding Bima Vistaar
Vima Vistaar is the brainchild of IRDAI, and they are launching the product as a comprehensive insurance plan. This will also enable Bima Vahak, a women-oriented insurance product. Bima Vahak aims to establish a women-centric distribution channel to enhance insurance inclusion and create awareness. This way, the product aims to improve insurance availability in every part of the country.
Even though there has been an increase in the field of insurance penetration in India over the last couple of years, there is still enough scope to make the country the fastest-growing global market in the years to come. The core principle and objective of the Bima Vistaar is to augment the concept of insurance for all.
IRDAI has been developing many initiatives to make insurance affordable and within the reach of the masses with its innovative products. With an all-in-one insurance product, they plan to bring about the combined effect of ‘Bima Vahak’, ‘Bima Vistaar’, and ‘Bima Sugam’ under one coverage roof.
Being a part of the ‘Insurance Trinity’, Bima Vistaar, together with Bima Sugam and Bima Vahak will serve as major components to achieving the vision of ‘insurance for all by 2047’ of IRDAI by bridging the gaps between insurance products, pricing, and circulation.
The Future of All-Inclusive Insurance
Innovative products like all-in-one insurance will open the door for customers to purchase insurance that meets their needs. This will help attract and expand the customer base with the help of new products and distribution. This will support the evolving customer expectations and enhance potential developments in the field of coverage offerings.
Further, the emergence and use of new technologies, such as artificial intelligence (AI) as well as machine learning (ML), to create digital platforms to reach out to people is another significant aspect.
The Role of Insurance Companies
Over the years, the role of insurance companies has evolved further. In addition to evaluating risks, gathering premiums, and enrolling policies to meet customer needs, they have also supported children in fulfilling their educational and aspirational dreams. The various collaborations of insurance companies with other sectors are way forward in this direction. The openness or responsiveness to emerging risks is another such initiative that will go a long way in the distinctive role of insurance companies.
Overall, the All-Inclusive Insurance initiative will contribute and further the work towards achieving the ‘insurance for all’ goal. The best part of the plan is that it aims to empower people, especially women, with comprehensive protection to allow them greater power. Vima Vistaar is expected to address the roadblocks in the field of insurance and fulfill the insurance needs of the general public.