Understanding Online vs Offline Insurance Purchase: Pros and Cons

Online Insurance Purchase 

Offline Insurance Purchase 

Pros 

Cons 

Pros 

Cons 

Convenience of purchase from any place and anytime.  

You are on your own. Extensive research and basic know-how are required to choose a policy.  

An agent or a consultant can give you end-to-end guidance, from choosing the policy to submitting the application and the final issuance of the policy.  

Since you are depending on the advice of one man, there may be a bias in choosing the product for you from a particular insurance provider.  

Transparency is expected in pricing premiums and about details of the plan. 

Guidance is limited, and you need to trust what is given in the websites.  

Not only at the time of insurance purchase but also during claim settlement the advisor can offer personalised assistance.  

Your premium may be expensive as it will include the agent’s commission. 

Low overhead costs involved. Hence, premiums are discounted and cheaper 

The financial jargon is difficult to understand and hence you might lack clarity about a product.  

If you are not tech-friendly, this is the ideal method for you. 

Product comparison will be restricted due to manual access. 

Factors 

Online Insurance Purchase  

Offline Insurance Purchase 

Costs And Discounts 

Insurance purchases through online mode via aggregators or company websites lead to lower premium costs due to heavy discounts.  

If this purchase is made via an agent, the commission of the agent is added to your premium which increases the amount of payment.  

Time Consumption 

For online purchases, all you need is scanned copies of your age proof and other documents. The mandatory details are to be filled by you, and hence, chances of error are low.  

In an offline process, a detailed form needs to be signed, and documents need to be attested and attached. Information and signatures can be missed in required places. Details, if not written in clear handwriting, can be uploaded incorrectly, creating problems at the time of issuance of policy and claims.  

Transparency  

Policy-related Information accessed online can be verified and reverified to get clarity about the claim settlement ratio and also the customer service of an insurance company.  

Here, reliance is on whatever the advisor says about the policy. Retrieving Information about policy terms and conditions is difficult since it is a one-on-one interaction 

Sales and Advisory 

During online insurance purchases, you interact with the backend team, who would not know you or your family personally, to suggest the best plans.  

In the case of an offline process, the advisor acts as a representative of the company whose commission depends on your purchase and his reputation. They are keen to earn your trust for upselling and word-of-mouth marketing for further leads. Hence, they are in for the long haul. 

Claim Settlement Experience 

The process of digital claim filing is faster and can be submitted via websites and mobile apps. You can even track your application status online. However, all the cumbersome paperwork is your responsibility, and claim disputes are difficult to resolve online.  

All documentations are done by the advisors along with submissions and follow-ups with the company. In case of disputes, agents act as mediators and help resolve them faster. However, the overall time taken for offline claims is much higher due to the manual verification process. 

Frauds and Spams  

Online purchases from insurance provider websites can reduce third-party fraud considerably. The payment systems are also encrypted, making it a safer experience for you. However, you should be cautious of fake websites and phishing attacks and be extremely careful while sharing your personal information on the internet.  

Insurer’s reliability can be verified by visiting their registered office and speaking to the authorities. But again, there may be fraudsters posing as advisors who can missell you the policies leading to financial loss.