In September 2025, the Insurance Regulatory and Development Authority of India (IRDAI) announced the launch of Bima Sugam, India’s first integrated digital marketplace for insurance. This marks a major reform in India’s insurance sector, aimed at enhancing accessibility, transparency, and efficiency for policyholders.

About Bima Sugam

• Digital Platform: A one-stop electronic platform where customers can buy, renew, compare, and manage life, health, motor, and general insurance products.
• E-Marketplace: Works like an “insurance UPI” by connecting insurers, intermediaries, and customers seamlessly.
• Paperless & Transparent: Every step—from KYC to policy purchase and claim settlement—is digitized.
• Ownership: A not-for-profit company set up with shareholding from life insurers, general insurers, and health insurers.

Key Features

• Policyholders can directly access and purchase insurance from multiple companies.
• Integration with DigiLocker for storing policy documents.
• Unified grievance redressal mechanism for faster resolution.
• Facilitates portability of policies across insurers.
• Expected to reduce commission costs, making insurance products cheaper.

Significance of Bima Sugam:

• Expands Insurance Access: Makes insurance products simpler, cheaper, and more transparent, supporting the goal of “Insurance for All by 2047.”
• Boosts Consumer Empowerment: Enhances choice, portability, and grievance redressal while reducing dependence on intermediaries.

Q. Consider the following statements about Bima Sugam:

1. It is a unified digital marketplace for buying, renewing, and managing insurance policies.
2. It has been launched by the Insurance Regulatory and Development Authority of India (IRDAI).
3. It is designed as a for-profit venture jointly owned by private insurance companies.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (a)