Just like UPI changed the banking system in India, a big change is coming to insurance. The Insurance Regulatory and Development Authority of India (IRDAI) has launched a one-stop digital marketplace called ‘Bima Sugam’. This portal will solve many problems related to insurance and make it easier for everyone to buy insurance.
Right now, insurance is not very common in India. The main reasons are fraud, lack of transparency, and other system problems. The Bima Sugam portal will remove these problems and make insurance cheaper and better. Because of this, more people will want to buy insurance.
What is Bima Sugam?
Bima Sugam is a regulator-backed Digital Public Infrastructure (DPI), similar to UPI. It is a one-stop digital marketplace for all types of insurance, including life, health, motor, travel, and property insurance. Customers can view and buy policies from different companies on a single platform. All insurance companies will join this platform, so customers will have many options.
‘UPI Moment’ in Insurance
Bima Sugam is being called the UPI of the insurance sector. It will be a standard, neutral, and easy-to-use platform. Just like UPI allows money transfer between any bank accounts, Bima Sugam will make insurance simpler and more accessible.
Main Objectives of Bima Sugam
- Simplify Access: Make insurance easy for everyone and reduce fear of fraud or high premiums.
- Increase Insurance Use: Raise insurance penetration in India and aim for “insurance for all” by 2047.
- Integration: Combine portals of insurance companies, agents, and repositories in one platform.
- Trust and Transparency: Build customer trust with standardised processes for buying, renewing, and claiming policies.
Ownership and Governance
Bima Sugam will be managed by Bima Sugam India Federation, a non-profit. Owners include Life Insurance Council, General Insurance Council, and other insurance companies. The government and IRDAI will monitor it to prevent misuse.
Services and Launch Plan
The portal is rolling out in phases:
First, users can compare different policies.
Later, side-by-side comparisons for all insurance types will be available.
Key Features:
- Policy Repository: View all policies in one account.
- Purchase and Renewal: Buy and renew policies on the portal.
- Claim Settlement: File claims directly, targeted within 72 hours.
- Digital Process: Completely paperless using e-KYC.
The transaction phase (buying and renewing policies) is expected by December 2025. Full services, including claims, grievance redressal, and third-party integration, will launch from 2026.
Benefits for Customers
Clear information and easy policy comparison.
Manage all policies on one dashboard.
Quick and simple claim settlement.
No paperwork required.
Bima Sugam has great potential but also faces challenges like governance, data privacy, and effects on traditional agents. If successful, it could transform the insurance sector in India.