How Digital Transformation Impacted Two-Wheeler Insurance Sector in India?
The benefits of digital transformation on India’s economy has been quite promising. In recent times, digitalization paved its way in almost every sphere of India’s business environment. Lately, major digital advancements have also been witnessed in India’s two-wheeler insurance sector.
The Motor Vehicles Act, 1989 mandates owners of two-wheeler vehicles to insure their vehicles to be able to ride them legally on Indian roads. Failure to comply with this requirement will result in fines and other legal consequences. Insuring your vehicle will also help you in saving your finances in case your vehicle meets with any accidents or mishappenings. Despite being a mandatory requirement, the majority of two-wheelers in India are not insured because of various reasons.
Nowadays, ditching the traditional way of providing insurance services offline, Digital Insurance is becoming the most sought after platform for purchase or renewal of two-wheeler insurance policies because of its manifold advantages. With digitalization, the insurance service providers can extend their services to the remotest rural areas without having to be physically present there. As a result, the number of insurance holders is increasing as opposed to the scenario that was existing a couple of years back.
In this blog, we have provided a brief glimpse of how digitalization has impacted the two-wheeler insurance sector in India. With the help digital platforms, the following benefits are reaped by the insurer as well as the customers:
Reduction in The Total Cost of Policies
With the availability of two-wheeler insurance online, insurer providers offer all their products and policies on their websites for the customers to explore and choose. There is less involvement of intermediaries, agents or other manpower, which contributes to the reduction of the overall operational cost for the insurer. Since operational cost gets reduced, the total price of the policies is also less compared to policies that are offered offline.
Policyholders Can Take an Informed Decision
Since the insurance service providers provide all their products and policies on their online platform, it becomes easier for the customers to explore different types of policies and select the one most suited to their requirements. All the information including the terms & conditions about the policies is provided on the website in a transparent manner. One does not have to depend on intermediaries or agents to explain the terms and conditions of the policies. This helps the prospective policyholders of bike insurance or motorcycle insurance in taking a quick, bias-free and informed decision with regards to the choice of policy.
A Less Time-Consuming and Cumbersome Process
Offline two-wheeler insurance involves a lot of paperwork. Selling of policies takes place through different intermediaries, branch offices or dealers. This makes the complete process time-consuming, cumbersome and painstaking. Through digital mode, the need for unnecessary paperwork gets reduced, which facilitates the completion of the entire process in a couple of minutes with just a click of the fingers. One can buy a policy while sitting at the comfort of one’s home through their smartphones without having to visit any office or branch physically. Any post-purchase changes or modifications in the policies can be carried out online without much of a hassle.
Smooth Claim Settlement Process
Through two-wheeler or bike insurance online platforms, settling the claims of insurance holders is a seamless process. The procedure for raising a claim by policyholders is quite a simple one and does not require much follow-up. The online insurance providers are very much particular about providing the best services to their customers and handle their claims and grievances in a prudent and efficient manner. This lowers the hurdles for the customers. With such fast and efficient services, the customers can be kept happy and satisfied, which in turn affects the overall reputation of the insurer.
With the help of digitalization, major reform is being expected in the two-wheeler insurance sector with regards to efficient services, enhanced coverage, streamlined processes and an increased number of insurance holders.