The insurance company may choose

 An agent or a broker can help the customer make a better choice. However, one has to ensure that the information provided by the aggregator sites or the broker sites are genuine.Utilising online payment gateway and transacting through credit, debit or net banking also eliminates the uncertainty and delay around sending cheques or cash through the agent. Technically, this should help customers get their claim amount easily.

There are less chances of customisation," said Pande.However, buying an insurance product without a human interface can also lead to a wrong purchase. But while doing away with agents one will have to examine all aspects of the product and the company, like insurance cover, term, exclusions, riders, credibility of the insurer and claim settlement record – all on his own. The payment is done fast and the policy document also arrives in your mailbox faster. Mostly insurance companies have simple products for the online channel and these are easy to understand even without the help of a third party. For someone who prefers to make purchases as per his convenience, there are health plans, life cover. Doing an online research on your own and making an informed choice can lower the chances of misselling. Many companies have come out with simpler health products for the online channel.

The customer acquisition costs are low in the online channel. But for others, it may not work.Convenience is the greatest advantage customers have while buying a product online. So, it won't be possible to customise a plan to suit your special requirements or negotiate your premium with the insurer. Claim processing is the most crucial aspect of any insurance policy. Several gaps still exist in the way the claims are being handled," said Pande. Reviews are crucial to understand which company has hassle-free claim processing systems.Pricing is another advantage the online channel provides. Chennai: Buying insurance online is an easy, convenient and cheaper as well. This can go up to 10 per cent. If the agent withholds some information about the product, it may result in misselling. The sites also provide reviews by customers who have already bought the product and made claims. These are vanilla products with not many riders. Arriving at the right sum insured and tenure is a difficulty most buyers face while buying a term plan online. The product should be bought only from an authentic site.In case of life cover, term plans are in great demand among online buyers. Home insurance too is available online. So, there is total cost advantage of 20-25 per cent for online product," said Sanjay Pande, executive director, Finsall Networks. In the absence of a professional to judge the requirement and paying capacity, the customer may end up taking a bigger or a smaller cover.. Many insurance companies allow online customers to make their insurance claims also online.

"In such cases usually messages pop up saying that a customer executive will get in touch with the customer," said Pande.Health insurance is comparatively more complex and buying it online would be a difficult thing to attempt for many.As the online channel gets larger for insurance companies with time, they will have to put the best systems in place for their customers to provide the same convenience in claims settlement as well. "Technically, online product should be cheaper than the one bought through a broker or an agent. The insurance plans available on the net are mostly pre-set. Once the customer has decided on the product, he can also check the insurer’s website for better pricing. If the claims do not get settled within the stipulated time, the customer can push his case through the agents. There is also the benefit of monetisation of operational efficiencies by cutting cost of delivery of the policy in its physical form. One also has to find out details such as hospital network and exclusion clauses.

The insurance company may choose to pass on the advantage of lower cost either in the form of lower premium or higher sum insured.A person, who does not need a medical check and is in the low to normal risk category, may not find much problem with the online products."But when it comes to processing of online claims, much needs to be done. Further, the commission for the broker or the agent, which can even go up to 15 per cent, can be eliminated.The customer can go to aggregator sites and compare the products of different companies before taking a decision.Finally, the taste of the pudding is in its eating.Insurance companies see a higher portion of motor insurance renewals and travel insurance coming through online channels. "These are pre-underwritten products and mostly all-encompassing. A human interface is very important at the time electric bicycle gearless dc motors for sale of claims processing. Online insurance is catching up fast among the net-savvy younger population. All individuals are not acquainted with the technical terms used by the insurance companies and much depends upon the comprehending capability of the buyer.However, there is a flipside to it as well. Insurance companies see a higher portion of motor insurance renewals and travel insurance coming through online channels. Agents may also try to push products, which provide them higher commission.While theoretically, the online facility looks good, there are a few drawbacks of the e-distribution channel. He may also opt for a longer term or a shorter term