Bajaj Allianz Life introduces Bima ASBA, allowing policyholders to block premium amounts in their bank accounts, ensuring smoother and more transparent insurance payments.
Kochi: Bajaj Allianz Life, one of India’s leading private life insurance companies, has introduced the Bima ASBA (Application Supported by Blocked Amount for Insurance – Bima ASBA) facility to enhance transparency and convenience for policyholders. This initiative aligns with the Insurance Regulatory and Development Authority of India (IRDAI)’s efforts to simplify the premium payment process and improve customer experience, said Tarun Chugh, MD & CEO of Bajaj Allianz Life.
Bima ASBA is a significant step toward making premium payments more seamless and customer-friendly. Under this IRDAI framework, policyholders can opt for a one-time mandate (OTM) via UPI, allowing them to block a specific amount (up to ₹2 lakh) in their bank account. The blocked amount will only be debited if the insurance company completes the underwriting process and approves the proposal.
If the application is not processed within 14 days or remains unapproved, the blocked amount will be automatically released back to the customer. Until the policy is issued, the policyholder’s funds remain in their bank account with applicable interest. Bajaj Allianz Life has already launched this facility in collaboration with payment partners, ensuring a secure and efficient payment experience for policyholders.
