The online motor insurance industry is going through a period of phenomenal growth in India. What started with some online aggregators that helped customers to compare policies has now graduated to a complete digital ecosystem.
Initiatives were taken towards digitalization of motor insurance in India
- Introduction of e-repositories: IRDA (Insurance Regulatory and Development Authority of India) launched the insurance repository in the year 2013. This facility enables individuals to purchase and keep their insurance policies in a digital format. This move means that people no longer need to maintain the paper copies of their insurance policies.
- E-Vahan Bima: E-Motor Insurance is an electronic document issued by your insurer. It contains a QR Code that can be scanned to access the details. So, when the traffic policeman wants to see your insurance copy, all you need is your smartphone. In case there is no internet facility, a message based verification process can also be done. Telangana was the first state to implement this facility in the year 2016. In stage 2, IRDAI is working on creating a mobile app for motor insurance.
Benefits of digitizing the motor insurance industry
- Safety: The biggest USP of e-documents is that they are extremely low-maintenance. With paper documents, you need to worry about their safe storage. Additionally, you need to protect them from wear and tear, accidental damage, thefts, etc. However, digitalization ensures that they are completely safe (without much effort from your end) and can be retrieved whenever required.
- Convenience: With digitalization, one can store all their car insurance (also health, life or any other general) related documents in one single account. Premium payment, service requests, complaints, claim initiation can be done online.
- Reduced Turnaround time: Earlier, the claim process was tedious. With digitalization, this process can be completed quickly and the transparency can be maintained.
- Lesser paperwork: Digitalization has led to lesser paperwork for everyone. This includes insurance providers, legal authorities as well as customers. There is a one-time E-KYC that is applicable for future policies as well.
- Environment-friendly: Buying Motor insurance online and using it moving online means lesser use of paper, which in turn keeps the Mother Nature happy!
Things to keep in mind while buying motor insurance online
- Compare multiple quotes: One of the biggest advantages of buying vehicle insurance online is that you can compare quotes from multiple providers at the click of a button.
- Lowest premium should not be the only deciding factor: The cheapest is not necessarily the best option. While selecting your bike or car insurance policy, do not go by the price alone. You should select a policy which offers adequate coverage for your vehicle.
- Read the fine print: You should always read the details of the insurance policy with special focus on the add-on covers. You may not need all the add-on features. For instance, if you are looking for a car insurance policy, you can choose to skip “daily garage allowance”. This cover offers a daily allowance if the car stays in a garage for a specific period. The benefit offered does not commensurate with the cost of the add-on cover and is hardly used in reality.
- Do some research on the insurance provider: Getting a good deal with your motor insurance policy is just the trailer of the movie. The real story starts later when you need to interact with your insurer for queries, making claims, etc. Hence, it is important to choose the right insurer. Choose a company that is known for their customer support, fast claim settlement and lower disputes. Many vehicle insurance online portals display the grievances settled percentage of the leading insurance companies in India.
So, the next time you need to make any transaction, related to your motor insurance policies, you can rest assured that the process is going to be simple and quick. And above all, you can do it anywhere with your smartphone, computer/ laptop or tablet.