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Buying Insurance online: The benifits and Risks..

By Mr. Rituraj Bhattacharya, Bajaj Allianz Life Insurance

Buying insurance online is quick, easy, convenient, & cheaper. And it is just a few clicks away.

We are referring to buying insurance online. The widespread use of the internet has revolutionised the services industry and domains like travel, retail, fashion and banking, which offer most of their services online.

Starting with motor insurance and in recent times travel and life insurance, the insurance sector, too, has caught up with this trend quickly.

With the help of the internet and the growing popularity of smartphones and tablets, the ability to search for information at any time has opened various avenues, one among them being easy transactions.

Moreover, since this medium offers transparent and comprehensive information, it creates ease of understanding too. Keeping with this trend, all leading life insurers today offer an array of plans to their customers online.
 
Mr. Rituraj Bhattacharya,
Bajaj Allianz Life Insurance
.
These plans are not only cost-effective, but also simple to understand & the purchase process is much more hassle-free. Right from Ulips, endowment plans, investment plans, retirement plans and in many cases, exclusive online-only term insurance plans are all available online today.

* Online policy purchase is still small in India (about 2% of offline sales), but has grown at the rate of 200% since 2011.

* As per market estimates, almost 1.30 cr searches a month are related to insurance, retirement and pension products.

* Industry estimates for average cover bought by policyholders range from Rs. 50 lakh to Rs. 75 lakh.

Sensing the growing demand for online term plans, almost all private life insurers are focusing on this segment.

While people may be skeptical about buying a financial product online, purchasing life insurance online does in fact comes with various benefits. Online life insurance plans are usually comprehensive and simpler to understand.

* For further ease of use, the product / plan is explained with additional tools such as audio-visual aids & FAQs.

* One also has the option of going through certain formalities with the click of a button; this speeds up the buying process substantially.

* Another advantage is the ease of purchase. There is less paper work involved in online purchase compared with offline purchase. One also has the option of paying through various modes of payment such as net banking, credit card & debit card.

* In case of term plans, the biggest benefit is that online term life insurance policies are cheaper compared with their offline counterparts. Customers are charged a lower premium mainly due to the absence of physical distribution costs.

* While the benefits of buying insurance online seem to outweigh the risks, there are certain factors that must be kept in mind.

* The first and most important point is to understand the product in its entirety. If there is any doubt on the features, cover offered, premium to be paid, it is necessary to first clarify the same by approaching the insurer through the life insurer’s call centre.

Since you are opting for a virtual medium of purchase, it is extremely essential to ensure that the website from which you are purchasing the plan is a reliable one. It is, therefore, recommended that all online purchases be done from the official website of the insurer.

Ensure that the site from which you are purchasing a product offers the requisite online security for financial transactions. The connection must be a secure one, that is an https connection rather than an http connection.

It is often nice to receive special offers on insurance products by email. However, beware of such ‘special offers’ as you may fall prey to phishing scams. It is advisable to verify such offer with the insurer concerned before investing.

The past few years have brought to light many disturbing incidences of mis-selling, cheating and forgery by insurance brokers. While buying insurance online, the decision is entirely that of the customer, based on concrete data rather than advice of an insurance agent.

 With a little bit of research and understanding, it is never too late to insure your life - the online way.

About the author


The author Rituraj Bhattacharya is head of product development and market management at Bajaj Allianz Life Insurance.
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