Bajaj Allianz Life has become the first insurer in India to go live with the Bima-Application Supported by Blocked Amount (Bima-ASBA) facility, aligning with the Insurance Regulatory and Development Authority of India’s (IRDAI) initiative to simplify premium payments and enhance policyholder convenience.
Bima-ASBA allows customers to block a specified premium amount (up to ₹2 lakh) in their bank accounts via UPI’s One-Time Mandate (OTM). The funds remain in the customer’s account, earning interest, until the insurance company completes the underwriting process. If the policy is issued, the blocked amount is debited; otherwise, the funds are released within 14 days. Bajaj Allianz Life has successfully integrated this system with its payment partners.
Tarun Chugh, MD & CEO, Bajaj Allianz Life, welcomed the initiative, stating, “Bima-ASBA strengthens trust, transparency, and digital adoption in the insurance industry. By allowing customers to block premiums instead of paying upfront, it enhances flexibility and security.” In Guwahati, where digital adoption is steadily growing, this move is expected to boost life insurance accessibility. Customers will benefit from reduced refund concerns and an improved digital transaction experience, enhancing trust in insurance products.