Neha is a high profile executive working in an MNC. While driving back home after work, she suddenly remembered that she had forgotten to renew her car insurance policy which was due to expire the next day.
She had also missed on paying the premium for her mother’s health insurance policy, the grace period for which would expire the next day.
Neha recollected a conversation in office regarding buying insurance online. She quickly switched on her laptop, logged on to the Web site of her car insurer and was able to renew her car insurance in a few easy steps. She then searched for the Web site of her medical insurance firm. With the policy document in hand, she entered the old policy number. A new Web page opened with all information fields related to her mother’s policy already filled in. She simply clicked the renew tab and chose the mode of payment.
Subscribing to insurance policies, be it motor, health, travel has come a long way since the olden days. Then, renewing your policy meant standing for long hours in queues outside the insurance office or scouting for agents to get the work done quickly, but at a price. With the advent of e-commerce, more and more firms in the insurance space are adopting the online purchase/ renewal platform.
Benefits
Online purchase/renewal of insurance offer a host of benefits:
Ease of purchase: One can purchase/renew a policy 24x7, 365 days a year. This could be from your office or the comfort of your home.
Lower cost: Purchasing an insurance policy online could also be more cost-effective since companies pass on the savings from distribution, administration and courier expenses to the customer.
Comparison of multiple options: One can compare various policies, evaluate add-ons to be included in the policy and choose one that best suits your needs.
Instant insurance : Buying insurance online is an activity that requires only a few clicks. In most cases, the insurance policy document is generated instantaneously.
Transparency : Buying an insurance policy online enables one to access all the terms and conditions related to the policy. As such, it ensures that the customer is able to take an informed decision.
In addition, one can seek help through online chat/ 24x7 toll-free calling facility to resolve any doubts that one may have
Ease of payment : One can choose from a wide range of options to pay online. These include credit/debit card payment, net banking, funds transfer.
Even as the online medium offers several benefits, it is important to take note of certain aspects while buying online.
Some caveats
While the online purchase process does make the entire exercise much faster, it is important that one gets acquainted with the salient features and conditions in detail. This will help avoid any disappointment at a later stage, especially while making a claim.
Two, while most insurers have put in robust security systems in place, it is important to reconfirm the same before transacting online.
One should ensure that the address line of the browser page reads ‘https’ instead of the regular ‘http’, since the same indicates secured connection.
(The writer is Head – Marketing and Direct , ICICI Lombard GIC)