Bima Sugam – Digital Insurance Platform
Context & Launch
Rolled out by the Insurance Regulatory and Development Authority of India (IRDAI) in 2025.
Claimed to be the world’s first integrated digital insurance marketplace.
Brings together insurers, agents, brokers, banks, and aggregators on one platform.
unified digital marketplace for all insurance needs—life, health, motor, travel, and commercial.
Functions similar to UPI for insurance, creating a Digital Public Infrastructure (DPI) that securely stores policy documents under Bima Pehchaan (unique lifetime digital insurance ID).
Forms part of IRDAI’s Bima Trinity along with Bima Vistaar and Bima Vaahak.
Supported by the Life Insurance Council and General Insurance Council.
Operated by the Bima Sugam India Federation (BSIF), where all insurance companies are members and equity holders.
Key Features
Bima Pehchaan: A unique, lifetime digital insurance ID for every individual.
Integration: Links all insurance policies under a secure, consent-based framework.
Ease of Use:
Buy, renew, and claim policies online.
Eliminates cumbersome paperwork.
Claim Settlement: Designed to speed up claim processing with transparency.
Vision: Insurance for All by 2047.
Insurance Sector
India = 10th largest insurance market (2021); projected to be 6th by 2032.
Insurance Density: Rose from USD 92 (FY23) to USD 95 (FY24).
Insurance Penetration: Declined from 4% of GDP (FY23) to 3.7% (FY24) (vs global average 6–7%).
High reliance on agents due to:
Complex clauses/jargon.
Dependence on intermediaries for claims.
Commission structure: Agents earn 15–40% of first-year premium, raising long-term costs.
Challenges & Concerns
Consumer understanding gap: Complexity of terms may still hinder adoption.
Agent disintermediation: Online model cuts commissions, but may reduce handholding, especially in rural areas.
Trust & Data Protection:
Needs strong data-sharing protocols.
Must ensure end-to-end privacy and integrity of personal information.
Cybersecurity will be critical for success.
Potential Benefits
Cost reduction: Eliminates misselling and inflated premiums.
Transparency: Easier comparison of policies.
Democratisation of Insurance: Wider reach, affordability, and inclusion.
Digital Push: Could be India’s “UPI moment” in the insurance sector.
Bima Trinity
Bima Sugam – Digital DPI for buying, managing, and settling insurance.
Bima Vistaar – Bundled, affordable policy covering life, health, property, accidents with quick payouts.
Bima Vaahaks – Women-led grassroots insurance awareness and adoption network.