Policybazaar’s Trust Tax Exposed

Vitals

  • What they do: India’s biggest website for comparing and buying insurance.
  • Peak position: >90 million visitors a month; backed by SoftBank & Tencent.
  • 4 Aug 2025: IRDAI hits them with a ₹5 crore (US $600 k) penalty for 11 rule-breaks.

What Went Right

First mover:
Made life & health policies as easy to buy as a train ticket.

Strong brand trust;
TV ads with Bollywood stars;
IPO parent PB Fintech now ₹40 k cr market-cap.

Where the Blood Flow Stopped

  • Misleading rankings: Labels like “Top / Best” had no data to back them.
  • Weak money flow:In some cases, premiums sat 30+ days before reaching insurers.
  • Opaque partnerships:The site didn’t show why certain insurers were pushed up the list.
  • Poor record-keeping:The IRDAI audit couldn’t trace who sold which policy.

In insurance, delays and hidden bias can leave customers uncovered when they think they’re protected.

Prescription

  • Show your maths:every “Top” badge must link to the scoring table.
  • Move customer money fast:same-day transfer or clear timer.
  • Make compliance a product feature:Live audit dashboard builds trust.

Take-away

“If you call something ‘Best,’ show the score— or people stop playing your game.”

Disclaimer: This analysis is based on public info and my own interpretation; facts may evolve and any errors are mine alone.