Online shopping is a reality of the 21st century. With growing penetration and user friendliness of the internet, the generally cautious Indian consumer is fast becoming comfortable with buying online. Safety in monetary transactions in this space is further acting as a catalyst for India’s e-commerce industry. The insurance sector too is finding its feet in the virtual shopping world with several insurance companies and aggregators setting shop and providing consumers with financial solutions at the click of a button.
Life, health, motor, travel, today a range of insurance products is available to consumers online. In fact, there are several leading insurance brands that have a special portfolio of online plans that cannot be bought at their branches or through agents. Consumers also have an option of comparing products before deciding on the financial plan best suited for them. Online insurance aggregators like policybazaar.com help to analyze various policies enabling buyers to make an informed decision while purchasing a cover. Besides these, there are several other factors creating the vast popularity of online insurance including:-
Decrease in the cost of premiums
The age old tradition of buying insurance has always been through an agent. Most of us are unaware that agents work on commission paid by insurance companies that is indirectly borne by customers through higher premiums. Buying insurance online cuts on distribution costs and commissions to agents. Also, most companies can look at cutting infrastructure costs by putting their products online. The benefits of this are eventually reaped by the policy holder through a decreased burden of premium.
If paperwork confuses you, then you can breathe a sigh of relief. Online insurance plans eliminates all unnecessary paperwork usually associated with buying insurance from an agent. Also with online plans, all the necessary documents are digitally preserved. There is little or no fear of loss or damage to policy proofs in case of an unforeseen emergency.
Analysis and advising in financial products purchase
As stated earlier, comparison is a great advantage with online insurance plans. Buyers can choose the best policies from various insurance companies keeping in mind their financial goals with just a little effort. Consumers can also look through comments posted by other users, get in touch with them to receive genuine feedback on the services of the insurer.
Speed in transaction
Need to file returns but don’t have enough time to consult an insurance agent for a tax saving policy? Online insurance plans will come to your rescue here. Speed to transaction is a major benefit with online policy purchase. If you are opting for pre-written financial product with medical examination, the policy is issued immediately in a soft copy format. This copy includes the ‘premium payment certificate’ which can be used to seek tax relief. Also, the multiple payment options including credit cards, net banking, cheques add to the ease of transacting online.
Post purchase service
Purchasing insurance online ensures standardized service and a pre-determined turnaround time. Unlike buying a policy through an agent where the service experience is subjective to the agent, online transactions have an undeniable uniformity. Also, most insurance companies and brokers offer support to buyers during and after purchase. There are options such as 'live chat' and customer care helpline to resolve your queries.
Yashish Dahiya, CEO, Policybazaar.com
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