Bima Sugam: How India's Digital Insurance Marketplace Will Transform Policy Buying and Claims

India’s insurance sector is on the cusp of a digital revolution with the upcoming launch of Bima Sugam, a centralized marketplace that promises to simplify everything from policy purchase to renewals, claims, and grievance redressal. Expected to go live in December 2025, this initiative could significantly boost insurance penetration across the country while creating a seamless experience for customers, insurers, and intermediaries.

Why India Needs Bima Sugam

Despite rapid economic growth, India’s insurance coverage remains among the lowest in the world. As of FY2023-24, insurance penetration in India stood at just 3.7% of GDP, far below the global average of around 7%. The government has set an ambitious goal of achieving “Insurance for All by 2047”, but reaching that milestone requires accessible digital infrastructure.

This is where Bima Sugam comes in. The platform aims to provide an “Amazon-like” marketplace for insurance products—whether life, health, or general—where customers can compare, purchase, and manage policies with transparency and ease.

The Journey of Bima Sugam

The concept of Bima Sugam was first floated in 2022 under the broader vision of “Insurance for All.” However, given its scale and complexity, implementation was delayed. The project required close coordination between multiple stakeholders, including life, health, and general insurers, regulators, and technology providers.

Momentum picked up recently when Ajay Seth, Chairman of IRDAI (Insurance Regulatory and Development Authority of India), inaugurated the website of Bima Sugam India Federation (BSIF), a non-profit body established to operate the marketplace. With this move, the regulator has signaled its commitment to making Bima Sugam a reality.

How Will Bima Sugam Work?

At its core, Bima Sugam is designed as a one-stop platform for all insurance needs. Key features include:

• Easy Policy Access: Customers will be able to buy and renew life, health, motor, travel, property, and agricultural insurance directly from the portal.

• Seamless Claims: Filing and tracking claims will become fully digital, reducing delays and paperwork.

• Transparency in Pricing: Since multiple insurers will be listed on the same platform, buyers can compare premiums and benefits without relying solely on agents or brokers.

• Safe Document Storage: Policyholders’ documents will be stored securely, ensuring hassle-free access during emergencies.

• Unified Complaint System: Grievance redressal will be integrated into the portal, providing a single channel for issue resolution.

Benefits for Insurers, Agents, and Brokers

While Bima Sugam will bring customers closer to insurers, it will not replace agents or brokers. Instead, it is expected to empower intermediaries by offering them digital tools to manage client portfolios more efficiently. Distribution costs for insurers may also come down, allowing them to pass on benefits to customers.

For insurers, the platform offers an opportunity to expand reach in underpenetrated markets. For customers, it ensures greater trust and accountability, as every transaction happens on a regulated and transparent digital system.

Timeline and Future Scope

Bima Sugam is scheduled to go live in December 2025. In its initial phase, the platform will function as an information and guidance hub, offering services such as e-KYC, limited policy categories, and basic claims support. Over time, it will evolve into a fully transactional marketplace covering the entire spectrum of insurance products.

Looking ahead, Bima Sugam is expected to support advanced features such as:

• End-to-end digital policy issuance

• Integration with healthcare providers for cashless treatment

• Agricultural insurance services for farmers

• Multi-language support for wider accessibility

A Step Toward Insurance for All

With low penetration and a fragmented distribution model, India’s insurance sector has long needed reform. Bima Sugam represents a transformative leap—creating a transparent, customer-first digital ecosystem that can bring millions of uninsured Indians under financial protection.

If implemented effectively, it won’t just simplify the way policies are sold and managed; it could fundamentally change the way people perceive and trust insurance in India.