Digital transformation affecting the bike insurance industry

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15 Jun 2023

Advancements in Digital Technology Leading to a Revolution in Bike Insurance Industry

All industries have benefited from the country's economic system becoming completely digitalized. Digitization has affected every industry, including those that were previously unaffected. This also applies to the bike insurance market, which has seen a wide range of changes as a result of India's economy is digital. Every phase of the contact between insurance firms and customers has been affected by these developments.

Although mandatory, only about 57% of two-wheelers in India have insurance due to the complicated process involved in doing so. Although the road is long, technologically-sound insurance firms are progressively reversing the trend. Read on to see how "Online Only" has affected the bike insurance industry and how it has benefitted clients.

Elimination of intermediates

The first effect is that insurance companies may now make all of their product offers online at one location. This enables the buyer to easily examine all of the insurance options and decide on the bike insurance policy they want to purchase. As a result, the function of agents and other middlemen is eliminated, which has the critical aspect of lowering the total cost of the policy.

Higher efficiency

You would have to fill out a ton of paperwork and maybe even visit several locations, including branch offices of the insurance company, when you get insurance for your two-wheeler offline. The buyer may acquire a bike insurance policy from the comfort of their home using a totally online approach that involves little documentation and does not require them to travel outside of their home. That is, therefore, unquestionably a good change in the bike insurance industry.

Zero paperwork

Customers may get two-wheeler insurance online in a matter of minutes, thanks to a strong digital environment. Even if the prior insurance has expired, there is no inspection or documentation necessary. Through the internet or mobile app, consumers may rapidly insure the car by submitting a little information about the vehicle and the prior policy.

Streamlined claim resolution

The influence of digitization extends beyond the process of obtaining insurance and includes the procedure of settling claims, which has been greatly streamlined by the digital wave. The convenience barriers that may arise while filing a claim for two-wheeler insurance are much diminished because the policyholder may file a claim and submit the required paperwork online.

Two-wheeler insurance comparison: Online v/s offline

Factors

Online two-wheeler insurance

Offline two-wheeler insurance

Buying process

Bike insurance is simple to get because of the paperless experience.

Difficult as it requires several stages. Purchase of bike insurance requires papers.

Price

Reduced operating costs as a result of the digital platform's efficiency and speed.

You may end up paying a higher price compared to purchasing insurance online because of hidden costs involved, such as commissions and administrative fees.

Claim process

Easy to use and hassle-free. Use the website or mobile app to submit a claim.

Burdensome paperwork; Complete papers and rely on agents to assist you with the challenging process.

Conclusion

Thus, the digital wave has had a good effect on the bike insurance industry. Customers now enjoy far more convenience across the whole insurance buying process, from the actual insurance purchase itself, where middlemen have been removed, through the process of filing and adjudicating claims.

Also, read about issues that may arise if you buy bike insurance offline.

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The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.