Pros and cons of buying insurance online in India

Just as everything is now available on a click, insurance too now can be easily purchased online in a convenient and cost-effective way. Read on the pros and cons of buying insurance online in India.

The trend of buying insurance is now steadily gaining acceleration as people in India are becoming more tech savvy. Instead of waiting in the long queues at the bank or agent’s office, people can now themselves opt to buy the suitable insurance plans by comparing insurer and the types of plans offered by them. From general to life and even mobile, one can now buy all the types of insurance policies online in India. 

Benefits of buying insurance online in India

• Convenience: The process of buying insurance online is convenient as you can now directly purchase insurance from the insurance company. No third party is involved and also no paperwork is required. Plus, you also save on the agent commission.

• Informed deal: You yourself can pick the suitable plan by comparing the policies on the basis of various factors such as coverage, premium, riders, claim process, features, benefits, etc. This helps you make an informed deal as you are not influenced by any third party and can weigh in the pros and cons of the policy by yourself.

• Security of policy documents: There can be times where you lose out on the policy documents and will have to wait for few days for the company to reissue you the new policy. However, if you buy the insurance policy online, you get an e-policy document that you can access anytime, anywhere. Additionally, you don't have to worry about losing/misplacing the documents as you will always have a soft copy of the same in your inbox.

• Reviews: When you buy policy online, you can check the reviews that a particular plan or a company has received. This helps you make the right choice and determines whether you can trust the company with your hard earned money.

• Prompt and automated service: You don't have to worry when you meet with an accident or have a health claim to file. You can simply call the insurance company or send them a message on any of the social media channels or connect with them on 'Live chat'. Insurance companies hire trained and experienced advisors who are available at your service on a 24*7 basis.

Cons of buying insurance online

• No tailor made plans: One of the biggest disadvantages of buying insurance policy online is that these plans cannot be modified as per customers requirement. For e.g. a person purchasing a vanilla plan cannot customize it to suit his/her own requirements. Negotiations over plan rates are also not possible.

• Possibility of erratum - First-timers or people not well versed with the online medium can be misled or may make mistakes while buying an online policy plan by filling the form incorrectly or due to the absence of an intermediary or due to zero scrutiny.

• Legitimacy issues: During an online e-transaction while purchasing insurance, one must check the SSL (security certificate) to avoid any fraud or discrepancies during the transaction.