Skip to main content

Online insurance buying still a non-starter in India

Insurers yet to find ways to address issues of database, technology

WHILE the committee on electronic issuance of insurance policies is scheduled to present its recommendations to the Insurance Regulatory and Development Authority (Irda) by March 4, the debate is still on whether the present infrastructure available in the industry can support such a system.

There are simple yet critical technicalities that make online issuance a tricky business.

For instance, it is convenient for a customer to renew a car insurance policy online, but for such a system to work, the insurer must have historical data, such as previous policy and vehicle registration certificate. In most cases, this is possible only if one chose the same insurance company year after year. If the insurer is changed, there can be delays ­ defeating the very purpose of buying a policy online.

Experts feel for a foolproof online policy issuance system to work, it needs to be robust yet flexible. Going online should mean doing more than just paying the renewal premium, viewing the latest fund value or checking claim status.

The reach of the online medium is limited. Insurance penetration through the online mode is linked to internet penetration and customers' comfort with electronic transactions. As of now, this facility can benefit only a certain segment of population that is internet-savvy and at ease with online business dealings.

Getting timely receipts for online payments can be another pain. "I needed the premium receipt by December 31, so I paid the premium online. The amount was instantly debited from my card, but the receipt was not generated. After repeated follow-ups, I was told that the payment has not been cleared by the payment gateway," said Amit Kumar MG, who finally missed the deadline for submission of his premium receipt.

In cases where medical and documents like age proof, address proof are not required, the policies are is sued online.

In cases where under writing is done at the point of sale, the process may appear longer as it requires the customer to fill in a de tailed application form and address a number of health-related questions.

Main tasks assigned to the new committee are to decide on the operational issues present in implementing electronic policy issuance, reduction in cost and any other legal complications arising out of such a procedure.

While the legal sub committee has put together a paper on the issues that need to be taken care of be fore policies are issued on line, grey areas exist.

These include customer privacy, sharing of client database, need for foolproof digital signatures and others. Verification of digital signatures will be the most important consideration. This is what will en sure that the right customer is buying the policy l and making changes in the policy documents.

 

Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...

Feeder funds are the cheapest way to invest in gold

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   There are four ways to put your money in gold — buying physical gold/jewellery , putting money in gold exchange-traded funds ( ETFs ), investing in a gold savings fund and going for the National Spot Exchange's e-gold. Now, some gold ETFs and e-gold even allow taking physical delivery of gold at the end of investment tenure. That might sound good if you wish to possess physical gold. But, given the firm price of gold today (almost ~31,000 per 10g), it is important that gold is bought through acost-effective avenue. Reason: Investing comes at a price. Add to that, India's gold buying is expected to decline in 2012 and 2013, according to the latest World Gold Council ( WGC )report. WGC Director Vipin Sharma feels gold imports may drop to 800 tonnes from 967 tonnes last year. And the mix between the jeweller...

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...

Mutual Fund Review: Reliance Regular Savings Balanced

Reliance Regular Savings Balanced fund has shown great resilience during market crash After a shaky start, this fund has established itself as a strong contender in this space. In the past three years it has ridden the market well by not only delivering during the market run-ups but also displaying resilience during the crash. In 2008, it witnessed the second lowest fall among its category and last year it was amongst the top three performers with a return of 76 per cent (category average: 61%).   The poor underperformance in 2006 can well be credited to the low equity allocation of the fund, which stood at just over 10 per cent for only four months that year. Though the fund has the leeway to go up to 75 per cent in equity, it has never touched that limit. In fact, it has exceeded 70 per cent in just five months in its entire history. During the crash of 2008, the fund managers had no problem going right down to 54 per cent (equity exposure). Fund managers Omprakash Kukian and A...

Tax Returns: Myths and facts of filing your Tax Returns

THE fiscal year has ended and many choose to make tax-filling. Despite this being a regular, annual ritual, several tax payers have some misconceptions, some of which are listed below: Misconception No. 1 Filing tax returns is a complex and cumbersome process. I need a Chartered Accountant to help me file my tax returns. Contrary to popular belief, preparing and filing tax returns is actually quite simple. If you have a digital signature you can accomplish the entire process sitting at home on your computer thanks to the e-filing facility on www.incometaxindiaefiling.gov.in. Alternatively, you can submit the returns online, print a one-page receipt, sign it and drop it off at the income tax office within fifteen days of submitting the returns. No documents are required to be submitted with the receipt. However, if you want help, there are several third party service providers who offer tax preparation and filing services for a fee as low as Rs 200. Misconception No. 2 The interest I p...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now