How Digital Transformation Impacted Two Wheeler Insurance Sector in India?

Digitisation has benefitted us in many ways. The economy is one of them. Ever since it marked its presence in every avenue, every sector has seen a significant rise in their business/process. Insurance too is one of them. Under The Motor Vehicle Act, 1988 it is mandatory for two-wheeler vehicles to have insurance. If any vehicle is found on the road without an insurance policy, the owner of the vehicle will face legal consequences. In spite of all the warnings, a lot of vehicles still don’t have insurance. 

Thanks to technology, people now opt for buying insurance online. Rather than doing it the traditional way. Online platforms allow one to buy, renew and compare the best package suited for an individual. The availability and easy accessibility push people to buy insurance as there is no travelling required, and the transaction concludes in minutes! This has been the primary reason for the growth of two-wheeler insurance in the country. Through this blog, we have tried to explain how digitisation impacted the growth of two-wheeler insurance: 

Reduction in the price of policies 

Because the insurer provides all their products on their website and gives the buyer more options to choose from. The buyer is well informed about the policy, and there is very little expenditure involved to make the sale. Since the operational cost is almost nil, the prices offered online are also less. 

Policyholders are well-informed 

All insurance policies, along with their features and benefits, are mentioned online. This allows the buyer to explore more options and select what’s best for him/her. Not just that, the companies even enlist the terms and conditions. Therefore, it is assumed that before the completion of the purchase, the customer has read every detail about the insurance policy. 

The process is less time-consuming and less cumbersome

When you purchase a policy through an agent or some other source offline, it takes a lot of time, effort and paperwork. This process is extremely cumbersome and painstaking. The online application makes the entire process smooth. Through the digital mode, the need for unnecessary paperwork is eliminated, and the entire purchase is completed in minutes. All you need is a smartphone or a computer, and your job is done! If there are any post-purchase changes, even those can be handled online without much hassle. 

Smooth claim settlement

Settling claims online is a seamless process. The procedure to raise a ticket for the claim is an easy and direct method and does not require much follow-up. The insurers are incredibly particular about maintaining their image online. Therefore, they ensure all necessary steps are taken to avoid anything that could potentially tarnish their image. They maintain efficiency and try their best to keep the customer happy and satisfied with their services. 

Hence, digitisation has been a boon in the insurance sector. It not only made the life of the buyers easy but have also made the process of availing a comprehensive insurance more streamlined and organised.