E-insurance or electronic-insurance is an online account that works more or less like a Demat account. With an electronic insurance account, you will be able to keep all your insurance policy documents in electronic format safely for the future.
All transactions and documents for any of your policies and related information will be stored in that one location in your electronic insurance account and you will have information about your policy start dates, expiration status, nominations, title, terms, and conditions in your e-insurance account. However, whenever you need something, you can easily download a copy of it.
According to industry experts, there are many benefits to having an electronic insurance policy. For example, it is not only convenient but also environmentally friendly and profitable, while reducing fraud.
These are some of the advantages of having an electronic insurance policy;
- Buying an insurance policy online eliminates the commission fee for the policyholder associated with the insurance agent. So the policyholder gets the insurance policy at a low premium. Hence, purchasing an insurance plan online becomes profitable.
- Also, the insurance company generally pays all costs associated with transferring all paper policies in the online form, and the policyholder is not required to pay any additional fees for the electronic insurance policy.
- As an insured, having an online insurance account is as convenient as all necessary insurance plans, including your health policies, investment plans, retirement plan, etc. They will be on one platform. Any type of policy stored in an electronic insurance account is called electronic insurance policies. You can also access these policies whenever and wherever you need them.
- According to experts on electronic insurance accounts, the opportunities for agency fraud have diminished. There have been many cases in the past where insurance agents mislead their clients, demand money from them, and mismanage their money. Having an electronic insurance policy reduces agency fraud.
- With an electronic insurance account, you are well aware of all your transactions and money management. Additionally, as there will be no insurance agent present with the policy in electronic insurance form, and all funds such as premium payments, etc. It will be transferred directly to the insurance company.
- Keep in mind that with an electronic insurance account, all your financial documents remain safe and secure, unlike a paper policy, where the chances of loss and damage are greater. Therefore, an electronic insurance policy protects the policyholder from unnecessary paperwork and protects against loss or theft of the document.
- With an electronic insurance account, you will not need to perform KYC verification again while purchasing a new policy, unless there has been a change in your KYC details. When purchasing a new policy, you can only mention your e-insurance account number, which is sufficient for the requirements.
- Since all documentation is done in digital form, which eliminates the need for physical documentation, this method is also very environmentally friendly.
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