Safeguards to Bear in Mind for Online Insurance Purchases

The insurance industry has traditionally been used to functioning exclusively in the off-line domain for their sales conversions. Relying chiefly on a well-established network of agents and advisors, industry players were more than happy with their existing setups. However, the exponential growth of web connectivity proved to be the catalyst for change.
Increased competition and market dynamics were amongst the other contributing factors.

Today, industry sources claim that the number of people purchasing online insurance products is rising. Improved convenience, not having to chase after people and cost are among the reasons being attributed to this phenomenon. For insurance companies too there are many benefits to be realized from selling insurance online. Insurance companies have to set up extensive distribution networks to service offline consumers. Infrastructure too has to be created and supported at regular intervals. In-addition, the staffing and remuneration costs too add up to a significant amount. Online insurance sales require a smaller chunk of company resources and the resulting cost efficiencies are passed on to the consumers.

It is the benefits such as these that are contributing to the growing popularity of online insurance purchases. But before you go and hit the submit button, here are a few things to know on maximizing those monetary savings:

- Most insurance plans sold online happen to be the most basic versions of their off-line counterparts. One must thoroughly inquire with a prospective insurer on the customization options in order to get a plan that is tailor-made to individual consumer requirements.

- Add-ons are a certain benefits that can be clubbed together with a particular insurance policy (E.g. No Depreciation cover in the case of car insurance policies). In the case of online insurance purchases, these add-ons have to be purchased separately and are no longer offered complementary, as can be the case with insurance purchased through a company representative or intermediary.

- Online purchases are best for people who have a basic understanding on how the industry and their offerings function. Others may require assistance and guidance. Often, this may be beyond the scope of the online support mechanisms and in such instances, one may have to turn to the traditional off-line sources.

- Claims processing is yet another area where insurance companies can sometimes come up short. For example, if an insurance company requires claims to be filed through their local office, one may have to consider the overall benefit of purchasing their insurance online. A prime example of such an issue cropping up could be in the case of health insurance claims, where detailed support documentation may be required to be attached when submitting a claim request.

- One must be extra careful when purchasing from an insurance aggregator or comparison site. Confirm that the necessary security clearances as well as financial safeguards in place, before proceeding ahead with any transaction. This is especially true when it comes to purchasing online travel insurance in India as there are quite a few places where one can buy travel deals that come with insurance bundled in.

At the end of the day, whether it is a general insurance purchase or something more specific, there is not just money but even personally identifiable information at stake. This is why, one must thoroughly evaluate the pros and cons of their decision rather than jumping up at the latest mouth-watering deal that they came across online.

Berkshire Insurance is leading online car insurance platform which helps you to gain best and effective motor insurance, travel insurance, health insurance deals in India. You can give your car gold safer protection by online car insurance renewal or buy new car insurance policy. Call us for Instant Car Insurance at toll-free number 1800-1800-880.