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Expectations have actually grown around Bima Sugam, the unified insurance coverage digital market inaugurated mid-September this year as the platform assured to streamline how Indians purchase, service and handle insurance coverage.
With India’s insurance coverage penetration at about 4% of GDP, Bima Sugam brings the possible to broaden gain access to, increase openness and develop trust. The site reveals the website is live however not yet open for company. Banners on the web page state market is ‘coming quickly.’
When completely practical, Bima Sugam intends to be a one-stop location for all insurance coverage requires– from item discovery and quote generation to acquire, renewal, claims and complaint tracking. It is developed to incorporate item details throughout insurance companies and classifications, permitting clients to make educated options.
Personal aggregator sites use comparable services however the distinction remains in what Bima Sugam represents– a regulator-backed, industry-supported digital public platform targeted at bringing trustworthiness, interoperability and standardisation. It lines up with the nationwide objective of ‘Insurance for All by 2047’ of the Centre and the IRDAI (Insurance Regulatory and Development Authority of India).
If carried out well, Bima Sugam might provide for insurance coverage what UPI provided for digital payments and ONDC intends to do for e-commerce. Its structure as a not-for-profit entity collectively promoted by insurance providers and intermediaries indicates a mix of regulative oversight and market involvement– a motivating governance design for digital public facilities.
We can review a couple of expectations we laid out in CoverNote in 2022 when the concept was revealed.
Universal involvement: Every insurance provider needs to exist and list all items. This will broaden option while highlighting and attending to a relentless concern– excessive option.
The expansion of policy versions reveals development of the market. Too much option can overwhelm and puzzle. The Securities and Exchange Board of India (SEBI) dealt with a comparable obstacle with shared funds and fixed it by means of standardisation. IRDAI’s intro of standardised policies in essential sectors was an action in this instructions; Bima Sugam can advance it by guaranteeing comparability of functions.
Comparability and clearness: Insurance coverage advantages typically sound comparable however differ commonly in significance. A transparent contrast structure can assist clients select sensibly. Streamlining insurance coverage language– protection, exemptions, co-pay, top-up– would likewise make the procedure more available and result in standardising underlying advantages of basic terms.
Renewals and movement: Auto-renewal and safe and secure auto-debit choices can avoid unintended policy lapses and advantage customers and insurance providers. Notably, a devoted mobile app is vital for the smart device generation that chooses to negotiate completely online. If Bima Sugam guarantees clearness, comparability and self-confidence, it can redefine how India engages with insurance coverage.
(The author is an organization reporter specialising in insurance coverage and business history)
Released – October 20, 2025 12:52 am IST
