The Open Network for Digital Commerce (ONDC) is gearing up to launch insurance products within the next 9–12 months, aiming to safeguard small sellers from risks like order cancellations and failed cash-on-delivery (COD). A top ONDC official confirmed this timeline, emphasizing the platform’s efforts to build insurance coverage through volume-based economies that reduce premiums while spreading certainty across the network.
Why Insurance Matters for ONDC Sellers
ONDC is integrating insurance to mitigate significant challenges faced by micro and small sellers:
- Returns and cancellations often result in financial losses.
- Failed COD transactions also pose a substantial risk.
By offering insurance, ONDC hopes to lower entry barriers, boost seller confidence, and strengthen the network’s overall ecosystem—without relying heavily on subsidies
How ONDC Is Developing Its Financial Services
ONDC has been steadily expanding its financial services footprint:
- In August 2024, ONDC revealed plans to introduce insurance and mutual fund products within two months.
- Prior efforts included sachetised insurance trials—especially in health and marine segments—with plans to add life insurance by year-end.
These steps align with ONDC’s broader strategy to roll out insurance (like motor, health, marine) and mutual fund products incrementally through pilot transactions.
Progress So Far & Future Outlook
Here’s how ONDC’s financial services rollout has shaped up:
| Category | Current Status | Upcoming Timeline |
|---|---|---|
| Insurance Products | Health, marine (trial transactions done) | Go live in next 9–12 months |
| Mutual Fund Products | Micro-investments (pilot going on) | Expected within coming months |
Notably, Aditya Birla Capital already offers personal loans, health insurance, and mutual funds through ONDC—demonstrating early adoption.The Times of India
Additionally, DSP Asset Managers became one of the first to go live with mutual fund offerings via ONDC, supported by integration with Cybrilla.
Why This Launch Is Significant
- Risk Mitigation for Sellers: Insurance addresses financial vulnerabilities tied to returns and COD, promoting stability for small sellers.
- Financial Inclusion: By democratizing access to insurance, ONDC makes essential protection accessible to underserved micro and small businesses.
- Ecosystem Trust: Insurance reinforces buyer-seller trust and could enhance brand reliability across the network.
