IRDAI’s Bima-ASBA – Pay Insurance Premiums Smartly And No Deductions Until Approval!

Starting from March 1, 2025, policyholders can now block their insurance premium amount in their bank account, which will only be debited once their insurance policy is approved. This eliminates concerns about refund delays, unauthorized deductions, and policy rejections after payment.
IRDAI’s Bima-ASBA – Pay Insurance Premiums Smartly And No Deductions Until Approval!
What is Bima-ASBA and How Does It Work?
Bima-ASBA is modeled after the ASBA system used in IPO applications, where funds remain in the bank account and are only debited after final approval. Here’s how it works for insurance premium payments:

Choose Bima-ASBA while applying for a policy – When purchasing an insurance plan, you can opt for the Bima-ASBA payment method.
Authorize fund blocking via UPI One-Time Mandate (OTM) – Your bank will block the required premium amount (up to Rs.2 lakh) in your account, ensuring no upfront payment is deducted.
Insurer processes your application – The insurance company will review your proposal to assess eligibility and underwriting requirements.

Final payment upon approval – If your application is accepted, the blocked amount is debited automatically.
Automatic unblocking if rejected – If the insurer rejects the proposal or does not process it within 14 days, the amount is automatically unblocked without requiring any manual refund request.

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