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How Online Transformation Affected the Bike Insurance Industry

Team AckoJul 22, 2021

Digitization has empowered customers to be more informed and independent than ever before. It is the same with the digitization of the two-wheeler insurance industry and, even more beneficial, if it is an “Online Only” two-wheeler insurance. New-age insurers such as ACKO are spearheading the online insurance revolution by harnessing technology and innovation.

Despite being mandatory, nearly 57% of two-wheelers in India remain uninsured because of the cumbersome process involved in insuring the vehicle. While the journey is long, insurtech companies are gradually changing the trend. Let’s read about the impact of the “Online Only” on the two-wheeler insurance sector and how it has benefited customers.

How Online Transformation Affected the Bike Insurance Industry

Super-fast and Easy

With all transactions online, buying or renewing the insurance policy is super-fast and hassle-free. Customers can compare different policies online and choose the one that fits their requirements, making an informed decision. Insuring a vehicle online acts as a one-stop solution as customers can buy, renew as well as track and raise two-wheeler insurance claims in one place.

No Agents

The most significant impact is that there are no agents or middlemen involved to influence customer’s decisions. Insurers can provide all their product offerings online, allowing customers to know the details of the policy, enabling them to make an informed decision. 

With no agents, insurers can follow a no-commission model, thereby reducing their operational costs and passing on the savings to customers through low-cost insurance policies.

Zero Paperwork

With a robust digital environment, customers can buy two-wheeler insurance online within a few minutes. There is no inspection or paperwork required, even if the previous policy has expired.

By entering a few details of the vehicle and previous policy on the website or the mobile app, customers can insure the vehicle instantly.

Low-cost Insurance Policy

With a 100% digital infrastructure and a no-commission model, insurers such as ACKO can pass on the savings to customers as low-cost insurance plans. With the adoption of the direct-to-customer model, customers have to pay a lower bike insurance premium compared to the traditional offline insurance plans.

Zero-hassle Claims

The online mode enables customers to register claims against their policy without any hassles. Customers can visit the website or the mobile app to raise and even track the claim in a few clicks. The claims team will do the rest for customers. 

New-age insurers such as ACKO provide instant claim settlement for minor damages, and the process usually takes only a couple of hours.

Digital Insurance Policy Document

The Insurance Regulatory and Development Authority of India (IRDAI), the apex body of the insurance sector, has made the digital or soft copy of the insurance policy document valid. 

Customers can save the digital insurance policy through the DigiLocker app that can be used for verification purposes. Digital policy documents eliminate the risk of losing physical insurance documents offering customers peace of mind knowing they can access the document easily.

Comparison Between Online Two-wheeler Insurance and Offline Two-wheeler Insurance

Customers are looking for ways to reduce time and procedures to insure their vehicles. Here is an insight into the comparison between online and offline two-wheeler insurance.

Factors Online Two-wheeler Insurance Offline Two-wheeler Insurance
Buying Process Paperless experience. Simple and easy to buy bike insurance. Multiple steps and complicated. Requires paperwork to buy bike insurance.
Pricing Lower operational cost due to the digital platform, which is cost-effective and quicker. Higher operating cost due to commission for agents, maintenance of branches, and offline procedures.
Claims User-friendly and hassle-free experience. File a claim via the website or mobile app. Cumbersome paperwork. Fill paperwork and depend on agents to help with the complicated procedure.

Conclusion

The procedure of buying, renewing, or raising a claim online has a positive impact on customers and the insurance industry. With digital two-wheeler insurance, there is a significant transformation in the insurance sector as it offers efficient services, transparent product offerings, and super-fast procedures. Online-only insurers are reimagining the experience of customers by providing a transparent and efficient service.

Frequently Asked Questions

Here are some of the questions that will help customers understand online bike insurance and its benefits.

Is online two-wheeler insurance safe?

Buying, renewing, or raising claims online is entirely secure and safe. All information about the policy and other services of the insurer is in one place so that customers can read and compare all the features before buying the insurance policy. Customers also have access to reviews of customers who have purchased insurance online so that they can choose the right insurance plan for their vehicle.

How to get a copy of the two-wheeler insurance policy document online?

There are several ways to get a copy of the bike insurance policy document online. Here are the ways one can access the soft copy:

  1. Access the account through the website/app and download the document.

  2. Access the document through the DigiLocker app. Customers need to ensure that they save the document in the app as soon as they insure the vehicle.

  3. Customers can access the document by checking their email account as digital insurers such as ACKO send the policy document as soon as the insurance policy is purchased.

What are the modes of payment to buy a two-wheeler insurance policy online?

Customers can pay the insurance policy’s premium through net banking, debit, or credit card, digital wallet, and UPI (Unified Payment Interface) facility, a secure mode of payment to buy or renew the insurance plan online.

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CIN: U66000KA2016PLC138288

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