Rise of Digital Insurance in India: Bima Sugam Bridges the Insurance Gap in India
Bima Sugam, which means “Easy Insurance” is a not-for-profit entity established by India’s IRDAI aiming to transform the insurance landscape. It aims to simplify and digitise the insurance marketplace. It’s a one-stop shop for all insurance-related needs, including policy purchase, claim settlement, and advice. By enhancing transparency, affordability, and accessibility, Bima Sugam seeks to empower policyholders and increase insurance penetration in India. The proposed digital public infrastructure will revolutionise the insurance world, making it easier for everyone to access quality insurance products.
How Does Bima Sugam Work?
Bima Sugam will operate as a central marketplace where users can:
- Browse and compare insurance products.
- Purchase policies directly from insurers.
- Manage policies and file claims online.
- Access grievance redressal mechanisms.
The Idea Behind The Creation of Bima Sugam
Bima Sugam is considered to be the UPI of Insurance. This platform, which unites consumers, insurers, and intermediaries on a single digital platform, is predicted to completely transform the way insurance is bought and provided in India. Customers will be able to purchase the policy straight from the insurer online.
| Bima Vistaar is a major component of IRDAI’s “Insurance Trinity” effort, which also includes Bima Sugam, an online all-in-one insurance platform, and Bima Vahak a women-led insurance platform, which aims to provide insurance to everybody by 2047 by bridging gaps in product design, pricing, distribution, and so on. |
The Big Picture of Bima Sugam
The guidelines focus on streamlining the entire value chain, from policy issuance to claim settlement, ultimately driving the vision of “Insurance for all by 2047. Here are a few improvisations that are expected upon implementation of Bima Sugam:
- Improved claim settlement processes
- Enhanced transparency and competition in the insurance world would lead to lower premiums and better product offerings.
- Reaching the underinsured and driving financial inclusion.
- Enabling informed financial planning for individuals and businesses
Bima Sugam, with its focus on transparency, accessibility, and efficiency has the potential to propel India towards a future of greater risk preparedness and financial security. Bima Sugam aims to bridge the gap between the underserved and financial security, paving the way for a more inclusive and resilient future for the Indian insurance landscape.
