Insurance is moving deeper into the apps Indians already use for payments, shopping and everyday transactions. Amazon Pay now offers vehicle insurance from HDFC ERGO, ACKO and ICICI Lombard, while Paytm distributes insurance products through partnerships with insurers including Digit, ICICI Lombard, Bajaj Allianz, Tata AIG, Aditya Birla Health and SBI General Insurance. PhonePe has also built insurance products with countless insurers including Bajaj Allianz, Aditya Birla Health, and ICICI Lombard.
The expansion is part of a wider shift towards embedded financial services, where insurance is presented alongside the transaction a consumer is already making. For users, however, buying a policy inside a familiar app does not necessarily mean that the app itself is the insurer.
Amazon Pay, for instance, says its vehicle-insurance offering is provided through its insurer partners, with customers able to compare premiums and coverage from multiple insurers before purchasing. The respective insurers issue the policies, rather than by Amazon Pay itself.
Paytm similarly distinguishes between its distribution platform and the insurers handling policies. Its insurance support page directs customers with claims-related queries to the insurer named in their policy documents, while providing an in-app route for queries about insurance orders purchased through Paytm.
Since the Insurance Regulatory and Development Authority of India (IRDAI) regulates different categories of insurance intermediaries, including brokers and web aggregators, it also maintains lists of registered intermediaries. An insurance platform can therefore have a different legal role from the company whose name appears on the policy.
Verification Requirements & Consumer Awareness
Consumers buying insurance through an app should consequently establish three things before completing a transaction:
- Who is underwriting the policy
- Who is distributing it, and
- Who will handle a claim or grievance
These questions are particularly relevant since the same app can host several insurers or products. Paytm’s disclosures, for example, identify its insurance-distribution business as working with multiple insurers rather than manufacturing all the insurance products itself.
PhonePe’s insurance offerings illustrate a similar model. Its car and bike insurance launch is in partnership with Bajaj Allianz General Insurance, while its later Maha Kumbh travel cover was in partnership with ICICI Lombard. The insurer can therefore differ according to the product being purchased.
In the case of Google Pay, the platform’s official documentation confirms that insurance premiums can be paid through the platform and that insurance payments can be supported through UPI AutoPay. Policyholders or potential buyers should not mistake the payment facility as Google Pay underwriting an insurance policy. The practical question for consumers is therefore not simply whether an insurance policy is available on an app, but what happens after the transaction.
Also Read: What To Do If Your Insurance Claim is Rejected
Buyer Responsibilities
IRDAI’s consumer guidance emphasises the importance of policy information, disclosures and grievance mechanisms, while its regulatory framework provides separate structures for insurance intermediaries and insurers. Buyers should stick to a few essentials before tapping on the pay button:
- Check the insurer named in the documents and the T&Cs
- Assess the coverage, exclusions and deductibles of a plan
- Understand waiting periods in detail, along with additional riders
- Note the add-ons included in the premium
- Pay attention to the cancellation and refunds process
- Inform yourself about the grievance redressal mechanism
An app may provide the purchase interface while the insurer controls the policy’s cancellation and refund terms. Similarly, the company handling customer support may not be the company assessing a claim. An informed choice makes the final tap on an insurance purchase less of a payment decision and more of a documentation checkpoint.
The convenience of buying insurance through an app is unlikely to disappear as financial products become increasingly embedded into digital platforms. But the familiar interface can obscure the chain behind the transaction: the app, the intermediary, the insurer and the claims process may all be different entities.
Looking to buy insurance on apps in India?
For consumers looking to buy insurance on apps in India, identifying those entities before payment helps provide a clearer picture of exactly what they are purchasing and whom they will need to approach if something goes wrong. MyRupia provides objective and unbiased insurance guidance to potential buyers and existing policyholders. Understand various insurance products in detail and know a policy inside out before you bet your money on it.
Disclaimer: This MyRupia article provides information based on publicly available government, regulatory and industry sources. It does not constitute investment, financial, tax, insurance or legal advice. Information, examples, market data and expert views may change over time and do not represent a recommendation to buy, sell, invest in or surrender any financial product. Readers should consider their individual circumstances and consult a qualified financial professional before making financial decisions.