• Startups offer microinsurance from Rs 5-50, reaching unbanked and low-income users.
• UPI, Aadhaar eKYC, and regional apps simplify enrollment and claims.
• Over 100 million Indians gain financial protection and stability.

As of now, India's unbanked population estimated at over 190 million adults continues to face barriers to financial security, with insurance penetration hovering below 4% in rural and low-income segments. Indian startups are leading a fintech revolution by embedding microinsurance into mobile apps, using UPI, Aadhaar-based eKYC, and regional language interfaces to deliver affordable coverage without traditional banking requirements.

Premiums as low as Rs 5-50 monthly cover health, crop, accident, and asset risks, often with parametric payouts triggered by weather data or health alerts.

These apps partner with telcos, MFIs, and NGOs to reach Tier-3/4 cities and villages, aligning with IRDAI's 2015 Microinsurance Regulations and government schemes like PMJJBY.

Saroj Topno Mittra, Director, Margdarshak, says, "Digital solutions and new technologies also offer great potential to overcome the hurdles of balanced socioeconomic development. With two-thirds of the world's population now connected to mobile devices, the digital channel is opening up new opportunities to reach unserved and underserved markets more quickly and efficiently".

Here are 10 Impactful Startups Serving Millions across India

1. Acko - Bite-Sized Digital Policies for Urban Informal Workers

• Varun Dua - Founder & CEO

Founded in 2016 in Bengaluru, Acko has grown to over 50 million users by 2025, with 60% from low-income urban migrants via its app. It offers microinsurance like Rs 10 gadget covers and Rs 20 health riders, integrated with UPI for instant buys. No bank account needed eKYC via Aadhaar enables claims in under 10 minutes.

In 2025, Acko's Ola Trip Insurance extension protects cab drivers and passengers, disbursing Rs 500 crore in claims to unbanked gig workers in cities like Delhi and Mumbai, reducing out-of-pocket health costs by 35%.

2. Toffee Insurance - Contextual Micro-Covers for Daily Risks

• Rohan Kumar - Co-Founder & CEO

• Nishant Jain - Co-Founder

Toffee, launched in 2017, targets millennials and low-wage earners with its app's on-demand policies for spectacles breakage or flight delays, starting at Rs 5. By 2025, it serves 5 million users, 70% unbanked, through SMS/API integrations with e-Commerce apps.

The platform deconstructs traditional underwriting for customizable packs, partnering with IRDAI-licensed insurers. In rural pilots across Uttar Pradesh, it has insured 1 million informal vendors, cutting loss impacts by 40% via digital claims.

3. BimaKavach - Simplified Micro-Health for Rural and Migrant Laborers

• Tejas Jain, Founder & CEO

• R.K. Jain, COO

Established in 2021 in Hyderabad it is now headquartered in Bengaluru, BimaKavach's app reaches 10 million low-income users by mid-2025, focusing on migrant workers and farmers with Rs 30 monthly health/life covers. It uses voice-assisted interfaces in Hindi/Tamil for low-literacy access, with premiums via airtime or UPI.

Parametric features trigger payouts for hospitalization without paperwork. Partnerships with MFIs have protected 2 million in Bihar and Jharkhand against medical emergencies, boosting household savings by 25%.

4. Finhaat - B2B-Enabled Microinsurance for Tier-3/4 Communities

• Vinod Singh, Co-Founder & Group CEO

• Navneet Shrivastava, Co-Founder & Group CBO

• Sandeep Katiyar, Co-Founder & Group CFO

Finhaat, started in 2021, empowers NBFCs and NGOs via its SaaS app to distribute insurance to 15 million underserved customers by 2025. Products include Rs 50 crop and asset covers for rural entrepreneurs, enrolled digitally without banks.

The platform's analytics tailor policies for smallholders, with 90% adoption in Rajasthan's villages. In 2025 expansions, it has facilitated Rs 300 crore in payouts, enhancing financial inclusion for women-led microbusinesses.

5. Kaleidofin - Inclusive Bundled Insurance with Savings for Underbanked

• Sucharita Mukherjee,Co-Founder & CEO

• Puneet Gupta, Co-Founder & Director

• ?Natasha Jethanandani, Co-founder & CTO

• Vipul Sekhsaria, Co-founder & COO

Chennai-based Kaleidofin, founded in 2017, integrates microinsurance into its app for 8 million low-income users, offering Rs 20 accident/health bundles with savings accounts via UPI. Targeting informal workers, it uses behavioral data for suitability engines, partnering with IRCTC for travel covers. By 2025, it has reached 4 million in Tamil Nadu's unbanked segments, reducing vulnerability through instant claims and credit-linked protection, with a 30% rise in user retention.

6. Gramcover - Tech-Driven Rural Microinsurance for Farmers

• Jatin Singh, Co-Founder & CEO

• Dhyanesh Bhatt, Co-Founder & Group CEO.

Gramcover, operational since 2016, uses its app to insure 3 million small farmers by 2025 with Rs 40 livestock/crop policies, leveraging satellite data for parametric payouts. No bank linkage required enroll via missed calls or app in regional languages.

In Maharashtra's drought-prone areas, it has disbursed Rs 150 crore in weather-triggered claims, helping unbanked households recover 20% faster from losses and sustain livelihoods.

Also Read: Top 10 DeFi Startups Drawing Attention from TradFi Investors

7. Bimaplan - Affordable Embedded Micro-Products for Low-Income Households

• Vikul Goyal - Founder & CEO

Bengaluru-based Bimaplan, founded in 2020 as a Y Combinator-backed startup, has evolved its platform to serve over 10 million unbanked and low-income users by 2025 with bite-sized health, life, and accident plans starting at Rs 10, embedded into partner apps for seamless access. UPI and Aadhaar enable instant enrollment without banks, with digital claims settled via API integrations.

Its focus on rural and vulnerable households via customized, low-premium products has covered 3 million in states like Uttar Pradesh and Odisha, partnering with fintechs and MFIs to disburse Rs 200 crore in claims, empowering families against daily risks and fostering financial security.

8. OneAssure - Corporate-Tied Micro-Health for Informal Sectors

• Ruchir Kanakia, Co-Founder and CEO.

Founded in 2019, OneAssure is a full-stack retail insurance platform that helps individuals make informed decisions about their insurance needs. The platform has assisted millions of policyholders in choosing the right health, term, critical illness, personal accident, and travel insurance plans. With unbiased expert recommendations, easy policy comparisons, and end-to-end support for purchase and claims, OneAssure ensures a seamless and transparent insurance experience for every individual.

9. Riskcovry - End-to-End Digital Platform for MSME Micro-Covers

• Suvendu Prusty, Co-Founder and CEO

Delhi-based Riskcovry, launched in 2018, enables banks and brokers via its app to offer insurance to 12 million unbanked MSMEs, with Rs 30 property/asset policies. The unified platform handles digital issuance and claims without paperwork, using eKYC.

It has partnered with 200 NBFCs in Gujarat, disbursing Rs 400 crore to small traders, mitigating theft and disaster risks for underserved entrepreneurs.

10. MicroNsure - One of the Leading Technology Microinsurance Consultancy And Distribution Company

• Kamalakar Sai Palavalasa, Founder and Group CEO

Established in 2020, their vision is empowering the economically vulnerable communities with affordable financial solutions. Since inception, MicroNsure has experienced remarkable growth, now safeguarding over 13.3 million lives.

With its expanding presence across nearly 25 states in India, the company continues its journey toward becoming the most trusted and preferred provider of microinsurance solutions in the country.

The Finish Line

These Indian startups are not just apps they're lifelines, collectively insuring over 100 million unbanked Indians in 2025 and aligning with the $1.5 billion insurtech market's 15% CAGR. By prioritizing affordability, tech simplicity, and partnerships, they drive IRDAI's inclusion goals, turning vulnerability into stability.

As digital infrastructure expands, their innovations promise even broader reach, proving homegrown fintech's power in equitable growth.