Why Buying Insurance Online is Beneficial

In this era of the world, people want everything to be done as soon as possible. Every second of a day is counted because of our busy lifestyle and competition in the market, and that’s why time consuming things are mostly avoided or deferred by the people. The perception of buying insurance was also the same because most of the people considered buying insurance a very hectic and time consuming process. Running to insurance offices, fixing a meeting with insurance agents, managing different policy documents, all these things kept people away from insurance.

But those days are long gone. With the availability of the internet, everything has become quick and easy. With 408.4 million internet users, India is moving fast towards digitization and insurance sector is also not left behind towards this big change. The availability of online insurance policy has made the process of buying and managing insurance policy very easy for everyone. Now you can buy an insurance policy with just a few clicks from the comfort of your home.

Benefits of Buying an Insurance Policy Online

So let’s look at the benefits of buying an insurance policy online:

Cost Effective

The cost of an insurance policy is a big concern for any policy seeker and online mode of buying insurance policy is very cost effective. The premium amount of offline insurance policies is very 10% to 25% higher in comparison to the online insurance policies and that’s because of the involvement of a middleman in the offline mode. A certain amount of commission is paid to the agent or broker by the insurance company which is added to your premium amount and that’s why the price increases. While buying an online insurance policy, you deal directly with the company and there is no involvement of any intermediaries. That’s the reason why online insurance policies are much cheaper than offline mode of buying.

Well Informed Decision

Understanding the terms and conditions of your insurance policy is very much necessary before making a purchase and online mode allows you to understand your policy holistically. Every detail of the policy like key features, inclusion, exclusion, sum assured, etc. are available online which allows you to make a well informed decision. While buying through an agent, you come to know only what your agents tells or what you ask. You might not be aware about some clauses about your policy and the agents also forget to mention it, and later it can come out as a bad surprise for you.

Easy Comparison

Comparison is the key for buying the right insurance policy for you because there are more than 20 insurance companies in India with different insurance policies and it’s your responsibility to choose the best one. There are many web insurance aggregators in India which gives you an unbiased and effective comparison between different insurance policies. You can also compare different insurance policies through the insurer’s website as detailed information like premium amount, sum assured, policy term, etc. are clearly mentioned under the policy. You might find two policies with almost the same features and benefits, but there might be a difference in their premium amount. So comparison also allows you to buy an insurance policy at an affordable price.   

Less Paperwork

Managing different policy document can become very hectic for you as the chances of loss or damage is always there and in such situations, the continuation and claim of your policy become risky. But while buying online insurance policy, the paperwork is always less as all the documents are submitted and received in the digital format. So you don’t need to run for photocopies of your id proof and other documents, just submit your KYC documents online and skip the hassle of paperwork.

No Mis-selling

The practice of mis-selling is very much common in the insurance sector. It involves selling of insurance policies by an agent or broker by giving misleading information to the buyer or by hiding the facts of the policy. Instead of recommending insurance policies, according to the need and the situation of the buyer, agents try to sell policies according to their commission. Due to such unethical practices, the buyer gets stuck with a policy which has no use for him. But online insurance policies completely wipe out the chances of mis-selling as you deal directly with the company without any intermediaries. Even the company’s helpline number helps you to choose the right policy and you get what you need.

So take advantage of the advancement in technology and buy insurance policy online. It will help you to make a better decision and you will also be able to buy insurance policy at an affordable price.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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