11 January

5 Benefits of buying online insurance

Category: Moter insurance

The world is changing and it’s changing at a very fast pace, from post-card and typewriters to internet and smart-phones. The change of pace has been incredible from 1990’s to 2010, which were the decades of telecom revolution. Internet seeped into our lives, slowly but surely and the smart devices made our access far more easier, the costs dropped and the speeds increased from 2G to 3G, from 3G to 4G and the work is under progress for 5G which might be launched by the next year.

India alone has about 380 million active internet users according to 2011 census data, this number is bound to shoot up, given the fast lowering prices of smart phones and cheaper internet, this coupled with government initiatives like Digital India and expansion of optic fiber network deeper into rural areas. This makes the online portals very much relevant, and therefore, the online insurance services.

The online insurance services have many benefits and we shall be listing a few in this blog of ours.

Cheaper Costs:

When you use an internet portal to buy insurance policy, it links you directly to the company’s data bypassing the agents, employees, therefore, cutting the costs of commission and overheads; this often cuts the cost by around 30% and in some cases even up-to 50%. This drastically brings down the premiums that you pay for your policy.

Larger Sum Assured:

By reducing the costs and bypassing the agents and employees, you now have an option to purchase a better & bigger insurance than what you would have purchased from your agent at the same price.

Cross check your policy firm:

While buying an insurance, it is of utmost necessity to know what is rate of insurance claim rejection of the firm, the lower, the better. You have the option to check out and ask from experts and users on the internet. The existing users often write reviews about the firm from their own experience. You can check the entire track record of the firm plus financial statuses to your satisfaction. The claim settlement records as well as user reviews help you make an informed choice on the same.

Transparency & reduced manual errors/manipulations:

The online mode gives you greater flexibility in the plans you want to choose and you can make informed choices with you doing your own ground work bypassing the agent. Minor errors by agents while filling forms have often led to rejection of claims when needed the most. The average rejection rate stands at 2% because of these minor errors, so make sure that you fill all the right information in the right columns.

The online forum also removes chances of manipulation by the agent who often trick people into buying costly policies for bigger commission of their own, as, the commission is decided in percentage of amount paid by you, For-Example: 10% of Rs. 100 premiums would be Rs 10 but 10% of a Rs. 1,000 premiums would be Rs. 100, wherein 10% is the commission for the agent.

Hassle Free & Customer Empowerment:

The agents get paid in percentage of commission from the premiums paid by you, therefore meaning, the larger number of clients they have, the larger is their income, so, they are often in hurry for the next client, this leaves room for error, minor errors that could lead to catastrophic events like rejection of claims for you. One can’t know the state of mind or pressure your agent is in, this creates distractions and therefore the chances for error.

While in the online version, you are absolutely in no hurry, sitting in the comforts of your cozy bed or sofa reading the policy statements with absolutely no files or paper trails, you can even track the status of your application, take a proper look at the choice of insurers and insurance policies that you have. You definitely don’t have to stand in ques, sweating for your turn.


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