The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new payment system, Insurance-ASBA (Application Supported by Blocked Amount), to make insurance premium payments easier and hassle-free. This system will come into effect from March 1, 2025.
What is Insurance-ASBA?The Insurance-ASBA system allows policyholders to block the premium amount in their bank account while purchasing an insurance policy. The amount will only be deducted after the insurer accepts the policy proposal.
Key Features of Insurance-ASBA✅ Pre-authorization of premium amount in a bank account
✅ Amount is deducted only after acceptance by the insurer
✅ If rejected, the funds are automatically unblocked
✅ Maximum holding period for blocked funds: 14 days How Will It Work?
1️⃣ Choose the Insurance-ASBA option while applying for a policy.
2️⃣ Authorize the bank to block the premium amount through UPI.
3️⃣ Insurer reviews the policy application within 14 days.
4️⃣ If approved, the blocked amount is deducted as premium.
5️⃣ If rejected, the funds are automatically unblocked.
✔ No immediate payment required during application
✔ Reduces premium payment delays
✔ Ensures transparency and security
✔ Minimizes refund-related issues
📌 With Insurance-ASBA, IRDAI has taken a major step towards simplifying premium payments and enhancing policyholder convenience. From March 1, 2025, buying life or health insurance will be safer, easier, and more efficient.
💬 What do you think about this new system? Let us know in the comments! 🚀
