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This article is more than 1 year old.

From lower premiums to flexibility; 6 benefits of buying insurance policy online

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As social distancing has become the new normal, the Insurance Regulatory and Development Authority of India (IRDAI) has brought in several measures to ensure seamless sell and purchase of insurance policies online.

From lower premiums to flexibility; 6 benefits of buying insurance policy online
In times like the current one, everybody is realizing the importance of having insurance. As social distancing has become the new normal, the Insurance Regulatory and Development Authority of India (IRDAI) has brought in several measures to ensure seamless sell and purchase of insurance policies online.
Buying an insurance product online is considered quick and cost-effective process for the customers, according to experts.
To know more, below are some of the benefits of buying the insurance policy online:
Cost Benefit
While making any purchase, the first thing that comes to an individual’s mind is cost and insurance is no different. Most online insurance plans work out to be cheaper as compared to their offline counterparts because of no involvement of any agent, thereby eliminating agent commission or any intermediary cost, according to Vaidyanathan Ramani, Head-Product and Innovations, Policybazaar.
Offline insurance, on the other hand, is sold by agents and their commission leads to increase in premiums for the customer.
Transparency
All insurance companies allow customers to get all the information about all the insurance plans available online. One can easily compile all the information regarding their policies, costs, premiums and benefits associated with the product under one platform.
However, while buying an insurance policy offline, the information is limited to only what the agent tells, according to Ramani.
Buying What Is Required And Not What Is Being Sold
While buying life insurance online, customers are directly dealing with the brand i.e. the insurance company. One can directly log on to the company’s website and go through the policy’s terms and conditions in full detail and can weigh the pros and cons and then decide which course of action to take.
On the contrary, buying a plan in offline mode means customers would be doing it through the help of an agent, as per Ramani.
Flexibility
With online purchase, one can sit in the comfort of home, compare the different policies and select the one that meets the needs.
"Also, there is flexibility of comparing the insurance plans of different insurers online, which ultimately helps customers to take the informed decision as per the needs and budget. This also helps customers to find the best suitable plan at the low premium rates and good coverage," explains Rakesh Goyal, Director Probus Insurance, Insurtech Broking Company.
Less Paperwork
By purchasing insurance online, the insurer will get simple documentation and less paperwork, according to Naval Goel, CEO and Founder of PolicyX.
Quick Solution To Customers' Issue
The online assistance options such as online chat facilities, chatbots etc helps the customers to get their concerns/queries addressed really quickly. Also, this helps the non-tech savvy customers to seek clarification regarding the process and offering assistance, according to Goyal of Probus Insurance.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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