Insurance — InsurTech Revolution in India
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. ...