Ananya is the antithesis of the modern online shopper: she refuses to buy anything online. Her reasons range from distrust of the seller or product to worries about the product never being delivered. Naturally, her misgivings about online shopping extend to online insurance purchase as well.

Ananya’s doubts about online purchase are understandable. However, she and others like her could benefit from giving online insurance a chance. Online transactions have never been safer, and that certainly extends to online insurance policies. However, even seasoned online shoppers greet online insurance buys with scepticism. Common fears are:

• What if the insurer rejects my claim?
• Does the lack of intermediaries (agents) equal lack of service?

These are valid fears—especially since any kind of insurance is a long-term commitment and you would not want any glitches after several years of paying premiums. Hence, at this point, it is important to discuss the risks involved.

1.Availability of Guidance: This is one of the biggest disadvantages of buying insurance online. No agent is available to sift through policies and hand you one that is tailor-made for your needs. The onus is on you to find a policy that fits your insurance needs. Insurance companies understand that the online buyer has to put in much more effort than an offline buyer does in order to purchase a suitable policy. For this reason, insurers ensure greater transparency for their online products. All product features are explained in detail so that the buyer knows exactly what he is buying.

2.The Risk of Mis-selling: Online insurance cuts out the problem of unscrupulous agents who resort to mis-selling.

Claim rejections are every policy buyer’s nightmare. The good news is that if you choose the correct policy and fill out the details correctly, your chances of claim rejection are minimized

Mis-selling has long been a problem in the Indian insurance sector. Online insurance minimizes this risk simply because there are no intermediaries earning hefty commissions by selling unsuitable products to customers. The online buyer will have to do some research, however, in order to ensure that he takes home a suitable product.

3.Claim Rejection: Claim rejections are every policy buyer’s nightmare. The good news is that if you choose the correct policy and fill out the details correctly, your chances of claim rejection are minimized. Many a time, insurance claims are rejected because the insured missed some information or provided incorrect details when filling out the application form. Rejections also occur because the insured is unaware of things like deductions and areas not covered by insurance.

How YOU Can Ensure Policy Safety

A little awareness can go a long way in terms of ensuring that your insured life is free of hiccups.

1.Choose Adequate Insurance Cover: Online policies typically feature low premiums, but your focus should be on policies that cover all your requirements. If that means shelling out a higher premium, so be it.

2.Consider the Tenure: Term plans tend to be cheaper, but you should also consider when the term plan will end and whether renewing insurance 15 or 20 years later will be pricier in the long run than choosing a policy with a longer tenure today.

3.Pick a Reliable Insurer: One cannot overemphasise the importance of picking the right insurance company. Since insurance is always a long-term affair, the insured must choose a company that will not go bust.

Thus, if the right precautions are taken, online insurance will prove not only safe but also safer than available offline options.

Written By: Deepak Yohannan