Why Buy Insurance Policy Online?

According to recent reports presented by the Indian Brand Equity Foundation, in the financial year 2018, the gross premium accounted from various insurance policies reached ₹5.53 trillion. From this data, it is evident that the market penetration by various insurance providers has become prolific over the years.

Now, in the effort to make insurance schemes more readily available, insurance providers have facilitated the purchase of these products via online platforms. The advent of the digital platform, especially in the last few years, has helped insurance providers to make the purchase of their products easier and much more streamlined than before.

So, what are the benefits you can reap if you buy insurance online? Read on to know!

1. Purchasing Benefits

With the process of availing these policies shifting online, the distribution efficiency for insurance providers has increased manifold. This has subsequently boosted the cost efficiency of the process.

With the introduction of the online method, you can now buy policy online directly from your insurance providers. This makes the presence of distributors/intermediaries redundant in the process. As a result, the distributor’s margin is saved in the process.

Further, since the application process is carried out virtually, insurance providers also save on the costs of paper and other resources. This helps to reduce costs even further.

These savings on the part of your insurance companies are shared with you through lower premium rates on the insurance policies.

2. Make an Informed Decision

One of the biggest benefits that you can enjoy if you buy insurance policy online is that it allows you to make an informed choice.

Purchasing an insurance policy can be an intricate process. It requires you to be aware of several terms and conditions and other minute details which can be easily missed.

But when you have every little detail about insurance policies available on your insurance company’s website, it becomes much easier for you to make an informed decision regarding it.

Further, with several websites listing the features of insurance policies provided by various companies, comparing and availing, the best one suited to your benefits have become much easier.

Just weigh in the pros and cons of the insurance policies and apply for the one with the maximum number of advantages!

3. Verify the Credentials of your Insurance Provider more easily

To ensure that you can claim the settlement against your insurance policy without hassle, it is crucial to check factors like your insurance provider's:

• Claim settlement ratio
• Reputation
• Claim process, etc.

Such information is easily available online. It has also become easier to review a company’s reputation by checking various customer testimonials through social media platforms like Facebook, Google reviews, etc.

This will allow you to gauge the authenticity of the company’s services based on customer feedback through various mediums.

4. Service Automation

The websites of various insurance companies are not simply limited to purchasing insurance online. They also make for efficient and prompt servicing channels, as well. The services imparted through these websites can be utilised by existing policyholders to sort out grievances and also to look up various information, whenever they require it.

If you are an existing policyholder, you will also be able to avail the following services:

• Download informative documents like the product brochure, policy wordings, etc.
• Avail premium payment quotes.
• Pay your premiums online.
• Renew policies.
• Make online claims.
• Keep a track on your existing insurance policies.

This is far more beneficial and convenient than the offline process as it negates your need to rely on someone for the above tasks.

Further, all the processes have become much more hassle-free than they previously were and allows you to complete them at a much shorter time.

5. Policy Document Security

It is not an uncommon occurrence where the policyholder loses or misplaces his/her policy documents.

The process to reissue duplicate policy documents can be extremely cumbersome and, frankly, not very desirable.

But if you purchase your insurance policy online, you eliminate the chances of losing these important documents because you will have a soft copy available with you. 

6. Efficient Customer Support

An insurance policy is almost always required during emergencies. Whether it is your health insurance policy for a medical emergency or your travel insurance while you require emergency assistance during trips, you need immediate access to the services of your insurance provider.

For this reason, the 24x7 customer support from your insurance providers is one of the more important benefits that you can avail if you buy insurance online.

Further, an efficient customer support team is also required to make your claim settlement process smooth and hassle-free!

7. Simple Documentation Process

One of the crucial benefits of buying insurance online is that it brings the advantage of easy documentation and a much more simplified paperwork process.

Since you are making your purchase digitally, your policy will be generated automatically, with the submission of a few simple documents. These are:

• KYC documents,
• Utility bills,
• Rent agreement (if applicable),
• Medical certificates (if required), etc.

You can simply submit these few documents online and avail your insurance product without hassle.

The online process of availing insurance policies thus allows you to bid adieu to the lengthy offline application and documentation process!

8. Put mis-selling of Policies in the past!

Previously, there were many instances where policyholders were duped into purchasing the wrong policy by intermediaries, simply for the sake of a higher commission.

But when you purchase the policy online, you deal directly with the insurance provider, without any intermediaries.

The insurance company helpline can assist you in choosing the right policy, and eliminate any chances of mis-selling the wrong product. The introduction of online purchase of insurance policies has, thus, promoted transparency between the insurance provider and policyholder.

However, always remember..

The online platform for purchasing insurance policies has been a boon to this sector, with processes becoming much more convenient for both policyholders and providers. But it is best to be cautious about a few things. Which are as follows:

• Make sure you retain a copy of your policy document in your personal laptop or computer. Since it contains information of every policy term and condition, it can be later used as a reference for hassle-free claim settlements.
• You should also be aware of online frauds and scams that can pose a problem for you later on.

With these things in mind, go ahead and make way for a smooth and easy insurance purchase through your service provider’s website!