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Buying insurance online comes with multiple benefits, cost-effectiveness being one of the most striking onesUpdated: Nov 28, 2017 17:13 IST
With the advent of the internet, a new generation of digital natives has been sculpted in the country. These youngsters prefer to approach e-retail websites for the purchase of day-to-day necessities such as groceries and household equipment. Even the pricey purchases like electronic goods and one-off buys such as railway tickets are bought online today, underlining the fact that we are becoming increasingly comfortable with online transactions. This has led to the proliferation of banking, payment of bills, and sale of insurance through the online route.
Although maximum attention is garnered by the sale of online term insurance plans in the industry, online sales of travel and car insurance are equally conspicuous. The advantages of buying insurance online are many, and insurance providers across the country are clearly aware of the benefits of going paperless.
● Buying insurance online is easy and convenient
One of the most striking advantages of online insurance purchase is the fact that it is completely hassle-free. You can shop for insurance effortlessly just like how you would buy your next movie ticket. You can log into the websites of any of the insurance providers and request for a quote. The insurance company will require certain details from you so that it can calculate the premium for your insurance.
After all the necessary details have been provided and you agree to the quote, you can proceed to make the payment. Most insurance companies accept payments through debit cards, credit cards, and net banking. The policy is issued instantly after the payment is made.
You can also compare insurance policies on neutral third-party financial websites and arrive at an appropriate insurance plan for your specific needs. Additionally, it is possible to enhance your insurance plan with add-on covers, such as the ever-popular zero depreciation cover for a motor insurance policy.
● Online insurance plans are cheaper
Although this sounds like a myth devised to drive customers towards online insurance purchase, this is certainly not the case. You should note that the cost-effectiveness of online policies is one of the most attractive benefits of buying insurance online.
When insurance companies sell policies through the internet, the involvement of middlemen like insurance agents is mitigated. From the insurer’s perspective, this helps in cutting down on distribution and operating costs. The insurance company, in turn, passes on these benefits to the customer in the form of discounts on online plans. Effectively, the customer can enjoy greater coverage at a lower cost under an online insurance policy.
● Internet sale provides online storage for policy documentation
Online insurance policies are stored on the insurer’s website for reference, when needed. This indicates that policy documentation is protected from incidents such as theft, misplacement, and natural calamities. Also, an online insurance policy can be easily accessed-- an internet connection is all you need.
● Online insurance purchase is highly secure
When insurance companies sell insurance online, they employ security standards that adhere to global norms. This ensures that your confidential/sensitive information is not compromised at any cost. In fact, insurance companies are of the opinion that policy sale through the internet has reduced the occurrence of fraud, implying that this is, in fact, the most secure mode of sale today.
● Insurers offer user-friendly interfaces for online purchase
The entire process of online insurance purchase is smooth, as most insurance companies have user-friendly interfaces for the same. The post-purchase experience is also easy and provides more value to the customer. Neutral insurance broking websites have interactive interfaces with attractive graphics and data capture methods such as sliders to determine the age and salary of the customer. From the customer’s perspective, this improves the entire insurance procurement journey. Moreover, the added benefit of being able to completely understand the product through research before purchasing cannot be overlooked.
Things to consider before buying insurance online
You should first assess your insurance needs and identify a plan that would cater to your requirements. You can educate yourself about various types of insurance through the financial literature available on the internet and compare policies online. This is a great way to understand the cost-effectiveness of a particular insurance scheme.
You should also check the reliability of the insurance company. The claim settlement ratio or the incurred claim ratio is a good indicator of this parameter.
Another important thing to note is the set of exclusions in the selected policy. It is crucial that you are aware of the coverage under the plan, so that you can avoid unpleasant incidents at the time of a claim.
The availability of high-speed internet that is easily accessible and affordable has provided the online insurance market a new meaning. Online insurance sale is now one of the most preferred routes of purchase and has subsequently buoyed the demand for online policies. Insurers have stayed in step with the rising demand by expanding their range of offerings. For instance, health insurance providers were initially offering individual plans to online customers. This has now been extended to family floater plans as well. Similarly, life insurance companies have gone beyond selling only term insurance policies online; endowment and unit-linked insurance plans are up for sale on the websites of insurance providers. And these can easily be purchased in a matter of minutes with limited paperwork.
First Published: Nov 28, 2017 17:00 IST