Bima Sugam: Unified Digital Marketplace for Insurance | 18 Sep 2025

Source: IE

Why in News?

  • The Bima Sugam India Federation (BSIF) has launched Bima Sugam, a digital platform envisioned as the world’s largest integrated online insurance marketplace.

What are Key Facts Regarding Bima Sugam?

  • About: Bima Sugam is a unified digital marketplace for all insurance needs-life, health, and general, where users can buy, renew, manage, and claim policies on a single platform. 
    • It will securely store policy documents and function like UPI, creating a Digital Public Infrastructure (DPI) for insurance.
    • It forms part of IRDAI’s Bima Trinity-Bima Vistaar, Bima Vahak, and Bima Sugam, and is supported by the Life Insurance Council and the General Insurance Council.
  • Coverage: 
    • Life Insurance: Term plans, savings (participating & non-participating), annuity, pension, ULIPs.
    • Health Insurance: Comprehensive medical and wellness products.
    • Motor Insurance: Third-party liability and own-damage policies.
    • Travel & Personal Accident Insurance for individuals/families.
    • Commercial Insurance: Property, marine, agricultural, industry-specific products.
  • Unique Feature: Bima Sugam differs from private distributors by offering end-to-end policy services and claim settlement at low cost, unlike private firms that only sell policies and earn high commissions.
  • Significance: It is the first step in building Digital Public Infrastructure for insurance, supporting ‘Insurance for All by 2047’ under Viksit Bharat 2047. 
    • It ensures transparency, low-cost access, a centralised database, and fosters innovation with quicker adoption of new products.

Bima Trinity

  • Bima Sugam: Unified digital platform for buying, servicing, and settling insurance policies.
  • Bima Vistar: Bundled policy covering life, health, property, and accidents with quick claim payouts.
  • Bima Vaahaks: Women-led grassroots network promoting insurance awareness and Bima Vistar adoption.

Insurance Sector in India

  • India is the 10th largest insurance market globally and is projected to become the 6th largest by 2032, surpassing Germany, Canada, Italy, and South Korea.
  • Insurance Density increased from USD 92 in FY23 to USD 95 in FY24, calculated as the per capita premium (ratio of premium to population).
  • The insurance penetration declined from 4% in FY23 to 3.7% in FY24 (global average 7%). Insurance penetration is measured as the percentage of insurance premium to GDP.

UPSC Civil Services Examination Previous Year Questions (PYQ)

Q. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020) 

  1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer
  2. Cost of a new computer if some miscreant wilfully damages it, if proved so
  3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
  4. Cost of defence in the Court of Law if any third party files a suit

Select the correct answer using the code given below: 

(a) 1, 2 and 4 only 

(b) 1, 3 and 4 only 

(c) 2 and 3 only 

(d) 1, 2, 3 and 4 

Ans: (b)