How Bima-ASBA Helps Secure Funds and Make Payment
Bima-ASBA (Applications Supported by Blocked Amount) is an innovative facility that allows insurance providers to temporarily block the premium amount from a customer's bank account when applying for life insurance policy The amount is only deducted if the insurer approves the policy. If the policy is not accepted, the blocked amount is automatically released and returned to the customer’s account within one working day. One of the most common reasons for a policy rejection is premium payment related issues, which can lead to having to undergo medical exams again if the policy needs to be reinstated. Bima-ASBA is one of the options which facilitate smooth transactions of payment of premium. Here’s how-:
Funds Are Always Available
When you apply for a policy through Bima-ASBA, the premium is reserved in your account but isn’t deducted until the insurer approves your application. This ensures that the money is set aside and available when needed.
Payments Are Secure and Easy
The method of UPI-OTM ensures that your amount is blocked safely in your bank account. If the insurer does not accept the application, the blocked amount is simply unblocked and returned, so you don’t have to wait for a refund.
Timely Payments
When you apply for an insurance policy, if you’re choosing BIMA-ASBA you will have to consent towards blocking of your amount. This is usually done via UPI-OTM. This ensures that once the policy is issued, and money is transferred from the prospect to the insurer, the payment is made to insurer on time. In case, the policy is rejected the amount will be unblocked within one working day.
Missed A Premium Payment? Here’s What You Should Do
Once you have secured a life insurance policy it is now time to ensure that you don’t miss out on payments. But in case you end up missing premium payment what should you do? Follow these steps to ensure your insurance coverage is safe and secure.
Reach Out to Your Insurance Provider Immediately
Contact your insurer as soon as you realize a payment was missed. They may offer solutions like grace periods or alternative payment options to help keep your policy active.
Settle the Overdue Premium Within the Grace Period
Most policies offer a grace period, allowing you to pay the overdue premium without losing coverage. Ensure you make the payment within this time to keep your policy active.
Inquire About Reinstatement if the Policy Has Lapsed
If the policy has lapsed, ask your insurer about reinstatement. You’ll likely be needed to pay overdue premiums, along with potential interest. Some insurers may also require a medical exam to reinstate coverage.
Be Aware of Potential Changes During Reinstatement
Reinstating a lapsed policy may involve higher premiums or altered terms, depending on your health or age. Ensure you understand the new terms before proceeding.
Preventive Measures to Avoid Missed Payments
To avoid missing premium payments, here are some practices that you can follow:
Automate Premium Payments
Set up automatic payments to ensure your premiums are deducted on time without having to manually make the payment each time.
Use Reminders
Use digital tools or apps to set reminders for your premium due dates. This helps ensure you don’t forget and can make timely payments.
Schedule Payments with Your Salary Dates
Align your premium payment dates with your salary or income inflows to ensure you always have enough funds to cover your premiums.
Review Your Finances Regularly
Assess your financial situation periodically to ensure you can afford your premiums. Adjust your payment schedule or methods if necessary.
Conclusion
Bima ASBA provides a helpful solution to facilitate smooth transactions of payment of premium.
With the convenience of automated payments and the security of real-time notifications, Bima ASBA can help ensure that your insurance coverage stays uninterrupted, allowing you to focus on other important aspects of your life.
Also, If you ever face a missed payment, following the necessary steps promptly will help you maintain your coverage and avoid unnecessary complications.
FAQs
What is Bima-ASBA?
Bima-ASBA blocks the premium amount in your bank account when applying for insurance. The amount is only deducted if the policy is approved; otherwise, it is returned.
How does Bima-ASBA helps you in in blocking your premium preventing policy rejection due non premium payment?
Bima-ASBA reserves/blocks the premium until the policy is approved, ensuring timely payment and preventing lapse without requiring advance payments.
What should I do if I miss a premium payment?
Contact your insurer immediately. To keep the policy active, settle the overdue amount within the grace period. If it lapses, inquire about reinstatement.
What is a grace period?
It’s the period after a missed payment during which you can pay without losing coverage.
How can I reinstate a lapsed policy?
Reinstate by paying overdue premiums, interest, and possibly undergoing a medical exam.
Can premiums change if I reinstate a policy?
Yes, premiums may increase based on your age or health.
How can I avoid missing payments?
Set up automatic payments, use reminders, align payments with your salary, and review finances regularly.
What is the benefit of automating payments?
It ensures timely payments, reducing the risk of missing one.
What if the proposal is rejected?
If the proposal is rejected, the insurer will send an instruction to the bank to release the blocked amount. Also, if the insurer does not process the policy application within a period of 14 days, the blocked amount will be automatically unblocked by the Insurer with the help of the bank.
An ISO 9001:2015 
