Till lately, the same product was not allowed to be sold for different prices on various channels. However, the recent change in action has been taken to make online transactions of insurance-related products more attractive.
The insurance sector scrutineer released their draft norms about the products that could be sold and serviced via e-commerce platforms. The norms clearly mentioned that they were a part of a bigger plan to bring optimum efficiency, have a wider reach among consumers, and lower transaction costs. Since the price would be decided by the insurer, he would be solely responsible in ensuring that the price is in compliance with the products that are filed by the authority.
The IRDAI has instructed that the purchase process should be done through the insurance self-network platform. Entities including insurance companies, agents, and intermediaries among others who are granted a certificate of registration by IRDAI would be eligible to sell the products. This includes life insurance, non-life insurance, and standalone health products.
Customers should find it easy to identify the products that are approved under the product approval regulations permitted by the respective regulations. These products on the portals would have the prefix “i”. The symbol would distinguish those products from regular products.
If companies are able to execute the process appropriately, the process of having an e-insurance account and buying through this channel won’t be that all that tedious.
Thanks to the regulatory support, insurance companies can now reach out and tap into the rural masses without the need of physical presence. With everything venturing online, the operating expenses of companies would reduce. Thus, they would be able to sell products at a lower price. This would surely motivate customers to shop insurance online as they would have numerous options.
This decision by IRDAI would be a win-win situation for customers who can find a blend of affordable prices and convenience; as well as for insurance companies who can increase insurance penetration.