Bima Sugam: Finally, after a long wait, Bima Sugam, the world’s largest online marketplace for insurance products and services, has officially launched. The Bima Sugam India Federation (BSIF) announced its launch on Wednesday with the unveiling of its official website. BSIF said the platform’s features will be rolled out in a phased manner.
The website will initially serve as an information and guidance hub, while full transactions will be enabled in the coming months once insurers and infrastructure partners complete the necessary integrations. This approach will also give insurance infrastructure sufficient time to adapt to the new system.
According to our partner, The Indian Express, the Insurance Regulatory and Development Authority of India (IRDAI) claims that the proposed Bima Sugam is a game changer and a UPI moment for the insurance sector. The launch took place at the Insurance Regulatory and Development Authority of India (IRDAI) headquarters in Hyderabad.
What is Bima Sugam?
Bima Sugam is an online platform where customers can choose a plan of their choice from a variety of options offered by various companies. Bima Sugam will cater to all insurance needs, including life, health , and general insurance (motor and travel). The platform will facilitate paperless claim settlement based on policy numbers. Initially, details related to insurance plans are expected to be stored on the platform through an insurance repository. This will be followed by a listing of policies.
What is its utility for customers?
The platform will act as a single window for policyholders to manage their insurance coverage. It will provide solutions for customers’ insurance needs (purchase, service, and settlement). It will provide an interface for intermediaries and agents to sell policies and provide services to policyholders, reducing paperwork. Commissions on policies are expected to be lower, benefiting customers. Insurance companies say the cost of purchasing policies will decrease.
Will physical mode end?
Customers will open an insurance account and policies will be held within this account, eliminating the need for physical documents. Furthermore, the paperwork involved in purchasing a policy will be reduced. Claim settlements and policy renewals will also be faster due to the significant reduction in paperwork, making it easier for customers.
What does IRDAI say?
IRDAI Chairman Ajay Seth described Bima Sugam as a “significant step” from the regulator’s perspective. He said, “Bima Sugam is a significant step towards building a digital public infrastructure for insurance in India. This initiative will empower policyholders, increase access to insurance, and ensure transparency and fairness across the value chain.”