We are accustomed to buying insurance from the agent but now the time has come to ditch the agent and look online.
The entire range from health insurance to motor insurance and from life insurance to travel insurance is available online. Buying insurance online is convenient as you buy the policy directly from the insurer. It also costs less as there is no distribution cost involved. Buying insurance online helps the customer to compare the premiums and services offered by different insurers and make an informed choice.
However the existing customers need not fret as the online medium is not limited to only sale of policies. It also acts as a service channel. They can use it to download brochures, make online payments of the premium, renew policies and also to make claims.
Advantages Of Online Insurance
Premiums of online plans are low because of the absence of intermediaries’ in-between the insurer and the customer as there is no brokerage involved.
Also the entire transaction is paperless which also decreases the costs.
Companies have dedicated call centres which work round the clock to help customers with the process and clearing any doubts during the entire process. They also help you at the time of claim settlement.
The customer has to keep in mind to give all the details regarding the existing and past medical records as online insurance is a contract between the insurer and the customer in good faith. All the details required are to be provided and the system right away gives alerts if any field is left blank, hence the customer cannot claim he was ignorant while calming settlements. Any discrepancies in submitting these records may create problems at the time of settlements.
When compared to offline plans online plans offer higher Sum assured for lower premiums. This is possible because of the low mortality risk and low service costs.
The only drawback with online insurance, there is no data about the claim settlement ratio of online plans alone as it’s not mandated by the IRDA. The ratio mentioned is combination of both the online and offline plans.