Insure Online, But Watch The Web

Until recently, most insurance-related sites provided consumers with information about insurance products such as rate quotes, information on insurance companies and insurance agents. The actual selling of insurance over the web was uncommon. Today, however, with the development and acceptance of electronic signatures and the security measures being implemented on websites, the actual application for and provision of insurance over the internet is more and more prevalent. While this mode of purchase can save a lot of time while buying insurance, very often it is a step in the wrong direction. Why? Sometimes the premium quotes provided by different websites for the same search — same age, sum assured, terms and payment frequency — may differ. This may result in you picking up the wrong policy.

A few days back I ran a query for a non-smoker of 28 years, sum assured of Rs 15 lakh and term of 10 years, from two well-known Indian websites. Interestingly, the premium quotes provided by both the websites were different for policies by Tata AIG Life Insurance, ICICI Prudential Life Insurance and Kotak OM Life Insurance.

The reason for the price difference could be because the linking of these websites isn’t live with the websites of insurance companies and hence the figures don’t get updated automatically. Another reason for the discrepancy in prices is that some of these websites provide quotes excluding the service charge, while in others service charges may be inclusive. To avoid any problems later on, here’s a list of the various things you should consider before you buy an insurance policy online.

a) Don’t Compare Apples With Oranges:
     Some of the websites give you only premium quotes and do not mention the name of the policy. This may not be the right way to compare as you cannot compare the features. Also, a consumer cannot have a fair comparison, as one would not know which quotes are for which policies as most of the insurance companies offer differing schemes under the same umbrella. In such a case, when you have a query, go to the insurance company URL. However, if you want to buy from the same website, speak with them at the customer service numbers. Also, always remember to take a ‘print-screen’ and save it on your computer before closing the website because otherwise all proof is lost once you shut down your computer.

b) Do A Comprehensive Comparison:
     You may not get a comprehensive comparison of all the insurance companies from a single website. For instance, websites give you a quote from companies with which they have tie-ups. Hence, in case a website does not provide a comprehensive comparison, the customer should move on to some other web-sites, which include most of the insurance companies.

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c) Examine Policy Features In Addition To Price:
    Lowest price isn’t always the best choice. It’s no point getting the lowest price if you aren’t getting the features you require. Insurance is bought to counter unforeseen circumstances and hence one must go through the fine print with a toothcomb. There are several kinds of risks and every policy does not necessarily cover all possible eventualities.

d) Security Of Website:
    Every website should have a statement concerning its security. A secure site will protect the data recorded from visitors from electronic theft or tampering. Be sure to review this privacy policy before leaving your name, email address or credit card information.

e) Privacy Policy:
    Check the privacy policy. If you do not want your personal information sold or used, you should make sure that the insurer will use it only for enrolling you for insurance coverage.

Take Home:
The internet provides a convenient opportunity for both the insurance industry and insurance consumers to do business anywhere and anytime. For those consumers who prefer to do their own research, deal directly with insurers, and conduct their business whenever they want, electronic insurance commerce is ideal. The minimum requirement for these cyber-consumers is to make sure they have done adequate research on the insurance companies and insurance products in which they are interested so that they purchase the coverage they actually want.