Online Insurance Policy

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About Online Insurance Policy

An online insurance policy is basically a policy being offered on the internet by the insurers. These policies have become pretty popular these days with increasing requirement for insurance to safeguard the future of oneself and the near and dear ones.

Online Insurance Policy Advantages and Disadvantages

The biggest benefit of an online insurance policy is that it saves the time of the insurer and the insured. It is also convenient to avail these policies since they enable the insured to work out, by themselves, the crucial details like choosing the coverage amount and determining the premium that needs to be paid in a stipulated period to secure that sum assured. This gives them a clear idea of how things work in the insurance industry.

These plans are also beneficial for the insurers as well as they negate the necessity of agents and the commissions to be paid to them. It is also easier to maintain a proper documentation of online policies as opposed to the offline policies. Similarly since the data of the insured is with the company itself it can utilize it to gain more customers through recommendations and suggestions.

The main disadvantage of an online insurance policy is that since the agents are not there the insured can often make hasty judgment in determining the sum assured without taking care of requirements. This can work both ways - they can take more than they need or settle for a lesser and supposedly safer amount.

Similarly when it comes to deciding the premiums they might agree to take the policy without even considering their ability to pay for it.

Policy Aggregator Sites

Policy aggregator sites such as policybazaar.com, insuringindia.com and easyinsuranceindia.com are important cogs in the wheel of the online insurance policies. These websites provide a comprehensive detail of various plans available in a particular category.

These websites provide information on all the important factors in an insurance plan like the premium, the coverage amount to give a proper idea to the insurance buyers.

The policy aggregator websites cover different types of insurance plans such as car insurance, investment or pension plans, child plans, health insurance, term life plans, surgery and critical illness plans, and travel insurance.

Information is also available on other forms of insurance like two wheeler insurance, commercial insurance, Life Non ULIP Insurance, Life ULIP Insurance, personal accident insurance, home insurance, business insurance, liability insurance, and third party insurance.

Online Insurance Policy Procedure

The process to avail these plans is fairly simple. The interested proposers need to go online and select the product first. They then need to fill in the necessary details after generating a quote. Once the details are provided they can buy the policy. However, the procedure to buy them may differ in case of certain insurers as they might need more details than what is normally required.

Top Online Insurance Policies in India

HDFC Life Online Insurance Policy

The Click 2 Protect Online Insurance Plan of HDFC Life is one of the leading online insurance policies in India. This plan provides coverage of INR 1 crore in exchange of a yearly premium of INR 8600.

Aegon Religare Online Insurance Policies

The iTerm plan from Aegon Religare is available online. This plan provides a cover of INR 1 crore for a premium of INR 6200. This is one of the few term plans that provide terminal illness benefits. The plan also covers people up to 75 years and takes care of all types of death including ones resulting from terrorist attacks.

The plan enables the owners to choose from 3 different riders:
  • Accidental Death Benefit Rider
  • Women Critical Illness Rider
  • Waiver of Premium Rider on Critical Illness
The policy provides tax benefits as per Section 80C of the Indian Income Tax Act and can be bought in 8 minutes.

The iMaximize Plan of Aegon Religare is a unit linked insurance policy and can be bought online as well. The plan provides life cover, maturity benefit, and nominees are provided income till they are mature. No fees are applicable for allocating the premium. The plan also provides tax benefits.

The iHealth Plan provides an assured payment even if the claim amount is lesser than that and provides dual claim benefits as well. The plan guarantees a consistent rate of premium for a 3 year period and renewal is assured till the policyholder is 100 years old.

ICICI Lombard Online Insurance Policy

The two wheeler insurance plan of ICICI Lombard can be bought online and the policy owner is provided a digitally signed document upon purchasing the same. The policy helps the holders get their two wheelers checked at more than 2700 garages that are part of the program network.

This program also provides cashless claims servicing facilities throughout the country. It also has optional personal accident cover for the co-passengers.

Kotak Life Insurance Online Policies

The Kotak e-Term/e-Preferred Term plan provides financial security to the insured's near and dear ones in case of unfortunate incidents like death. The plan provides a Step-up option that is provided only with term plans that are available on the web. With this facility the policy owner will be able to add to the life cover at various points in his or her life.

This means that even when the lifestyle of the insured gets better they will be able to arrange the necessary cover to ensure it is maintained after they are gone. Ladies and non users of tobacco are charged lower premiums.

The Single Invest Advantage is a combination of an investment and an insurance plan where the insured can make a one-time investment and not pay any premium as long as the policy lasts. Once the policy ends it provides loyalty additions along with a lump sum. The plan provides life coverage as well thus insuring the family members after something bad happens to the insured.

With this policy the owner can customize their fund portfolio through top ups and also make partial withdrawals.

The Assured Income Plan provides the insured a yearly income for 20 years along with a lump sum payment when the policy matures. The policy also provides total life insurance benefits throughout its tenure.

Last Updated on 09/12/2012

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