Bima Sugam's first products set for Sept-end launch: Irdai Chairman

Irdai Chairman Ajay Seth says Bima Sugam will roll out initial motor, health and term insurance products by September-end as insurers complete technology integration with the platform

The Insurance Regulatory & Development Authority of India (Irdai) Chairman Ajay Seth said on Tuesday that initial products for Bima Sugam should be available by the end of this September, adding that the consultation paper on distribution reforms is expected by the end of July. 

 

Speaking at National Insurance Awareness Day organized by Life Insurance Council Seth said that, “It (Bima Sugam) is behind schedule, but I expect that by September end, the initial products will be available. The three products which are being prioritised are motor, health and term insurance. Insurers are working on the tech to connect. It is a market infrastructure. It is a good quality product at a much lower cost because the platform doesn't have to survive on a high commission, (but) it may require some fees.”

 

Bima Sugam is part of Irdai’s broader Bima Trinity, which also includes Bima Vistaar — a rural-focused composite insurance product — and Bima Vahaak, a women-centric agent network that will sell Bima Vistaar products through the Sugam platform.

 

The Bima Sugam platform, whose website was launched in September 2025, is being positioned as a digital marketplace bringing insurers, intermediaries and customers onto a single interface. The implementing entity, Bima Sugam India Federation, has an authorised capital of ₹500 crore and a paid-up capital of around ₹310 crore, with shareholding distributed across life, general and health insurers. The platform is expected to be rolled out in phases for customers and intermediaries starting this year.

 

On the interest among foreign insurers in the sector after the Government allowed 100 per cent Foreign Direct Investment (FDI), Seth said that there is growing interest in the general insurance segment due to the growth in the sector. Life insurance grew at the same pace as the economy, while the general insurance sector grew faster than the economy. He said that the authority has approved 100 per cent foreign ownership for a general insurance company, while another application is still under process. An application has also been received in the life insurance sector. However, he did not divulge the name of these companies. 

 

Recently, Irdai had approved KIWI General Insurance, backed by Westbridge Capital. Separately, Australia’s QBE Insurance Group had agreed to acquire the remaining 51 per cent stake in Raheja QBE General Insurance from Prism Johnson for ₹324 crore, subject to approvals, positioning it to take full ownership following the policy change. 

 

Mahindra group and Canada’s Manulife also plan a 50:50 life insurance joint venture with ₹3,600 crore each. Prudential plc has agreed to acquire a 75 per cent stake in Bharti Life Insurance and gradually bring down its stake in ICICI Prudential Life Insurance, while Angel One is also preparing a digital-first life venture with LivWell. There are also interests among other foreign players to take full ownership in Indian general insurance companies or joint partnership. 

 

About Irdai’s possible exposure draft on distributor commissions, Seth said that it will be out before the end of July.

 

In a major shift in stance on public listings of insurance companies by the insurance regulator, Seth said that insurance companies should pursue listing of entities only when there is a genuine need to raise capital and that it is not required for mere transparency.