Straight from the Specialists
(Any opinions expressed here are those of the author and not of Thomson Reuters)
There are 24 life insurance companies operating in India, and Life Insurance Corporation of India (LIC), the industry’s biggest player, was one of only five which did not have an online term plan, until now.
LIC had earlier tested the online waters with an immediate annuity plan, but stayed away from the most-purchased plan – online term insurance.
Now, with the launch of the company’s e-Term plan, a lot of apprehensions about online products will be dismissed. While most private players have online term plans, the absence of LIC provided ammunition for offline distribution channels to punch holes in this amazingly cheap and convenient insurance product.
A huge price difference between online and offline insurance products having identical benefits led to questions on whether claims for online plans would be honoured; and how is was possible to even sell at such low rates? The fact that LIC, the biggest and most well-known insurance player, hitherto did not have an online plan meant questions kept lingering.
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Insurance in India is divided into two broad categories — life insurance and non-life insurance (also called general insurance). For the record, most retail non-life products such as health insurance, car insurance and travel insurance are already sold completely online by most insurers.