Insurance — InsurTech Revolution in India
What is Insurance?
Insurance is a contract where a policyholder pays a premium in exchange for financial protection against specific risks. India’s insurance market is the 10th largest globally, with ₹80+ lakh crore premium collection (FY24).
Types of Insurance in India
Life Insurance
- Term Insurance: Pure protection, claim on death
- ULIP: Investment + Insurance
- Endowment: Savings + Insurance
- Health Insurance: Medical expense coverage
General Insurance
- Motor Insurance: Mandatory (Third Party + Comprehensive)
- Health Insurance: Individual, Family, Senior Citizen
- Home Insurance: Property protection
- Travel Insurance: International trips
- Crop Insurance: PMFBY scheme
Key Players
Life Insurers
- LIC (dominant market share)
- HDFC Life, ICICI Prudential, SBI Life
- Term insurance specialists: Aegon, Edelweiss Tokio
General Insurers
- Public: New India Assurance, United India
- Private: ICICI Lombard, Bajaj Allianz, HDFC Ergo
- Standalone Health: Care, Manipal Cigna
InsurTech Platforms
- Aggregators: Policybazaar, ComparePolicy, GIB
- Direct: Acko, Digit, Loop Health
- Embedded: Zopper,urance
IRDAI Regulations
Key Rules (2024)
- Insurance Regulatory and Development Authority of India (IRDAI)
- Panel Doctors: Network hospitals must be disclosed
- Claim Settlement: 30-day timeline for cashless
- Surveyor Appointment: 72 hours for major claims
- Insurance Act 1938: Comprehensive legal framework
Recent Reforms
- Insurance (Distribution) Regulations 2024: More distribution channels
- Bima Sugam: Unified insurance marketplace (under development)
- Micro Insurance: Simplified products for rural areas
Consumer Rights
Policyholder Rights
- Free Look Period: 15 days to review policy
- Claim Settlement Timeline: 30 days (cashless), 60 days (reimbursement)
- Grievance Redressal: IRDAI Grievance Cell
- No Claim Bonus: Discount on renewal for no claims
Red Flags
- Mis-selling of endowment as term insurance
- Exclusions not clearly explained
- Delayed claim settlements
- Unauthorized agents
How to Buy Insurance
- Assess Needs: Term for family, health for medical emergencies
- Compare: Use IRDAI’s BIMA Benchmark tool
- Check Claim Ratio: Higher = better insurer
- Read Policy Wordings: Understand exclusions
- Keep Documents: Policy copy, claim forms, receipts
Common Claims Issues
Motor Insurance
- Cashless: At network garages only
- Reimbursement: Pay first, claim later
- Own Damage: Claim for accidental damage
- Third Party: Legal liability coverage
Health Insurance
- Pre-existing Diseases: Waiting period (2-4 years)
- Room Rent: Capped at room type
- Day Care Procedures: Covers treatments <24 hours
- No-Claim Bonus: Increases sum insured
Reporting Issues
- IRDAI Grievance: https://bimabharosa.irdai.gov.in
- Insurance Ombudsman: For disputes up to ₹30 lakh
- Consumer Court: For deficiency in service
- RTO: For motor insurance disputes
Prime References
- IRDAI Official Portal - Regulations and updates
- BIMA Bharat - Grievance portal
- Insurance Information Bureau - Data and statistics
- IRDAI Consumer Education - Public awareness
This 101 guide is part of CashlessConsumer’s fintech education initiative. Last updated: March 2026.