The Advantages of Storing Your Insurance Policy Online
Your insurance documents and paperwork is important, you may constantly need to go back and check those documents to attain various information like the terms of the agreements, the policy number etc. You will also need to access your insurance paperwork when you need to make a claim or add a member. The point is it’s a key document that you will need to refer to from time to time. This means you will have to keep them safe and away from damage and in a place where you can access them easily. But think about the last time you had to look for these documents, did you have to go through a lot of paperwork just to find it? Of course, you did. And we all know how difficult it is to store paper and keep it free from damage. But that’s not the only problem, in case they get lost, you will need to run from pillar to post to get those duplicate documents. So ask yourself, do you really want to go through all this hassle and worry just to keep your insurance documents safe when you can just store them online? We’re sure you don’t. With the creation of online insurance repository, policyholders can now store their policies online in an electronic form.
From October 2016 the regulator made in mandatory for all insurance companies to issue electronic policies. This way any policyholder can make changes and revisions to their policy quickly and with accuracy. Storing your insurance policy in an electronic form will give you the convenience of accessing your policy whenever you want.
Now although there are many pros to storing your policy online, as this process is fairly new in India, it’s not always going to be that simple. Let’s look into the advantages and disadvantages of storing your insurance online.
Pro – Ease of Access: Having your policy documents in an electric form allows you to access your policy whenever you want and from wherever you are. You don’t have to dig through piles of papers every time you want information about your policy. You can make changes to your policy from the convenience of your home. This also helps in making the claim process easier.
Con – Security: As this is a fairly new process in India, the question about “Will my personal information be safe?” arises. The doubts about security arise because the authorized person helping you set your policy up online is also available virtually, therefore increasing the risk of online fraud and data theft. Although unlikely the possibility of data leaks and hacks still exist making this whole process risky. This is why man policyholders and insurance are uncomfortable storing the data online for these reasons.
Pro – Cost Benefit: Buying and storing your insurance policy online could prove to be more cost-effective. Since the policyholder buys the insurance directly from the insurer the cost or commission paid to the disturber is eliminated. In addition to this, the cost of the premium is also much lesser than that of a policy brought manually. The entire process of being paperless further reduces cost, making electronic storage not only convenient but cost-effective.
Con – Efficiency: The newness of this process gives rise to doubts about its efficiency and quality. Many people aren’t sure about how productive this will be and whether it will meet quality standards or not. Today there are only a few insurance providers that have insurance repositories online for fear of its efficiency and security.
Pro- Eliminate damage and loss of documents: Storing physical insurance documents makes them susceptible to loss and damage. It can easily get misplaced among the pile of paperwork you keep at home and if that’s not all, there’s the question of where to store it. All this hassle can be avoided when you choose to store your insurance documents in a repository. This way you don’t have to delay making changes to your policy because you can’t find them or they have been damaged. You can go online and conveniently make modifications
Con – Network issues: There will be situation where you will need information from your policy at urgency but connectivity issues may not allow you to access them online. Its times like these that make owning a physical document a better choice.
Pro – Single platform: When you have your policy stored in an insurance repository, you can do more than just buy or renew your policy online. You can also conveniently making modifications to your policy. You can add a member to your policy, change personal information, make claims and even get your questions answered all on one single platform.
Apart from the above pros, another important advantage of owning an electronic insurance form is that it saves paper. With today’s environmental crises, it is important that we do everything we can to build a better world and saving paper is a great way to start. This will not only help the environment but also reduces printing cost thereby making your insurance less expensive.
The four main online repositories today are NSDL database management limited, Central Insurance Repository Limited, CAMS Repository services limited etc.
While this is a new step towards digital Indian, it is still an important one. And although India as a long way to go from here in terms of security, efficiency and quality, it’s a great start that provides us with the luxury of convenience when storing our policy documents.