Over the next decade, the total insurance premiums are expected to grow on average by 14 per cent annually in nominal local currency terms (9 per cent per annum in real terms)

The Indian insurance industry, since its inception, has been providing security and resilience to businesses and individuals alike. As a result, India has not only emerged as the fastest-growing insurance market in the world but is also poised to become the sixth-largest by 2032, as per a study by Swiss Re. Over the next decade, the total insurance premiums are expected to grow on average by 14 per cent annually in nominal local currency terms (9 per cent per annum in real terms). And, the fact that the Insurance Regulatory and Development Authority of India (IRDAI) has committed to enabling ‘Insurance for All’ by 2047 further hints at the potential and new opportunities for the ever-evolving sector. In recent years, we have been experiencing a myriad of disruptions, innovations, and technological advancements that have given rise to several new insurance businesses.

Owing to the increased demand for insurance, several brokers look forward to scaling their businesses. But, scalability in dynamic times is a challenge like no other. No matter how much the fundamentals of its operation remain intact, new challenges are likely to emerge owing to the ever-changing market landscape. Therefore, insurance brokers looking to scale up need the right steps for growth, which include careful planning and strategic execution.

Expanding distribution channels

While scaling an insurance business, there are several areas that a broker needs to consider. One of the key areas is reaching a broader customer base. In a bid to provide a wider range of products to clients, the need of the hour is to build a strong distribution network. In India, Tier-2 and Tier-3 cities are becoming the next hotbeds of growth. Therefore, to tap this market, increase their reach, and scale efficiently, insurance businesses need to expand their distribution network in these areas. In this regard, the presence of physical distributors on the ground is critical, as face-to-face interactions ensure trust and credibility among customers.

Focusing on a client-centric approach

The ever-changing customer preferences pose a potential challenge for businesses that want to scale. Therefore, insurance businesses need to prioritise customer-centricity. According to a collective report by Deloitte and Touche, organisations that follow a customer-centric approach are 60  per cent more profitable. Therefore, the need of the hour is to comprehend the preferences of the customer and then offer them personalised advice, customised insurance solutions, and exceptional customer service. Also, to ensure efficient scalability with an expanding client base, it is vital to sustain a robust relationship with other stakeholders in the insurance ecosystem, such as insurers, technology providers, reinsurers, and more.

Embracing technological disruptions

In the digital era, it is evident that those businesses that fail to adapt technology for their operational purposes will fall behind. Therefore, a broker’s growth can be fueled by adapting the right technology, such as data analytics, which could provide market insights to spot new trends, consumer preferences, and business prospects. Also, a broker focusing on scaling their business can, in addition to traditional marketing tactics, invest in lead generation and digital marketing strategies that may help it extend its clientele and reach a wider audience. Moreover, scalability also depends on building a solid technological foundation that facilitates frictionless policy management, claims processing, and CRM (customer relationship management). Therefore, it is crucial for brokers to embrace technological disruptions in order to grow. 

Leveraging ‘Phygital’ model

While technology has enabled people to buy insurance online, customers still prefer to talk to an expert before purchasing a policy. According to a Health and Term Technology survey, 66  per cent of individuals are not comfortable purchasing insurance digitally. This proves that, indeed, consumers enjoy the convenience of self-service, but human interaction still holds an important place in the insurance industry. Therefore, staying on par with modern-day technologies can provide a competitive edge to organisations, but integrating them with human touch will ensure efficient scalability. Several people in Tier-2 and Tier-3 cities may not have access to digital platforms, and PoSPs (point of salespersons) in this regard can aid insurance businesses in bridging the insurance gap in these areas. Owing to their better understanding of local culture and language, they can educate customers and provide personalised support. This, in turn, makes insurance more accessible to people and helps insurance businesses expand their customer base.

Scaling an insurance business necessitates a strategic approach that integrates technology with human engagement, broadens distribution channels, emphasises customer centricity, and follows a ‘phygital’ model. Insurance brokers, in order to successfully grow and tap new markets, can follow these steps, which will not only help them scale efficiently and negate challenges but also generate employment and bridge the insurance gap.

The writer is the CEO and co-founder of Policy Ensure.

General insurance refers to a category of insurance policies that provide coverage for various non-life risks faced by individuals and businesses. Unlike life insurance, which focuses on providing financial protection in the event of death, general insurance offers protection against unforeseen events such as accidents, property damage, liability claims, theft, natural disasters, and more. It encompasses a wide range of policies, including motor insurance, health insurance, home insurance, travel insurance, fire insurance, and marine insurance. General insurance policies are designed to mitigate financial losses and provide a sense of security in times of uncertainty. They are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) to ensure fair practices and consumer protection.

Here are a few common types of general insurance products available in India:

1.    Motor Insurance: Provides coverage for damages or losses to vehicles, including cars, motorcycles, and commercial vehicles.

2.    Health Insurance: Offers financial coverage for medical expenses, hospitalization, and treatments for illnesses or injuries.

3.    Home Insurance: Protects against damages to the physical structure of a house and its contents caused by perils like fire, theft, or natural disasters.

4.    Travel Insurance: Covers unexpected expenses related to trip cancellations, medical emergencies, lost baggage, or flight delays while traveling domestically or internationally.

5.    Fire Insurance: Provides coverage for damages caused by fire to properties, including residential or commercial buildings.

6.    Liability Insurance: Protects individuals or businesses from legal liabilities arising from third-party claims for bodily injury or property damage.

7.    Marine Insurance: Covers goods and cargo during transit by sea, air, or land, protecting against losses or damages.

8.    Personal Accident Insurance: Offers financial support in the event of accidental death or disabilities resulting from accidents.

9.    Business Insurance: Provides coverage for businesses against various risks, including property damage, business interruption, liability claims, and more.

10.    Crop Insurance: Protects farmers against crop losses caused by natural disasters, pests, diseases, or other specified perils.

2.     What is the role of the Phygital model in Tier 2 & Tier 3 penetration in India?
The Phygital model plays a crucial role in increasing insurance penetration in Tier 2 and Tier 3 cities in India. These cities often have limited access to digital infrastructure and lower digital literacy rates compared to urban areas. The Phygital model combines physical and digital channels to bridge this gap and effectively reach the underserved population.

In Tier 2 and Tier 3 cities, physical touch points such as branch offices and agent networks hold significant importance. They provide a sense of trust, credibility, and personalized assistance to potential customers who may be unfamiliar with digital platforms. Insurance companies leveraging the Phygital model can establish a wide network of branch offices staffed with well-trained agents. These agents can engage with customers face-to-face, understand their specific needs, and provide customized insurance solutions.

Simultaneously, the Phygital model integrates digital platforms to enhance customer interactions and convenience. Mobile apps, websites, and chatbots enable customers to access information, compare policies, and calculate premiums. These digital tools empower individuals to initiate and manage insurance processes at their convenience, ensuring consistent engagement across channels.

By adopting the Phygital model, insurance companies can leverage the trust of physical touchpoints while harnessing the convenience and accessibility of digital platforms. This holistic approach helps in building awareness, altering perceptions, and increasing insurance penetration in Tier 2 and Tier 3 cities of India.

3.    What types of risks are covered by general insurance?

General insurance in India covers a wide range of risks across various sectors. It provides protection against uncertainties and financial losses arising from unforeseen events. Here are some types of risks commonly covered by general insurance:

1.    Motor Insurance: This includes coverage for private and commercial vehicles against accidental damages, theft, third-party liabilities, and personal accident cover for the driver.

2.    Health Insurance: Health insurance policies provide coverage for medical expenses incurred due to illness, accidents, hospitalization, surgeries, and critical illnesses. It can be for individuals, families, or group policies offered by employers.

3.    Home Insurance: Home insurance policies protect against damages or losses to residential properties caused by fire, theft, natural disasters, and other perils. It covers the building structure, contents, and provides liability coverage.

4.    Travel Insurance: Travel insurance offers coverage for trip cancellations, medical emergencies, baggage loss, flight delays, and personal accidents while traveling domestically or internationally.

5.    Fire Insurance: Fire insurance policies cover damages caused by fire and allied perils like lightning, explosion, riots, etc., to buildings, contents, stock, and other assets.

6.    Marine Insurance: Marine insurance provides coverage for goods in transit by sea, air, or land. It protects against losses or damages to cargo, vessels, and any liabilities arising during transportation.

7.    Liability Insurance: Liability insurance covers legal liabilities arising from third-party claims for bodily injury, property damage, or personal injury. It includes products liability, professional liability, and public liability insurance.

8.    Industrial Insurance: This category includes insurance coverage for industries and businesses against risks such as machinery breakdown, equipment failures, business interruption, and loss of profit.

9.    Miscellaneous Insurance: It covers a range of risks like personal accident insurance, burglary insurance, livestock insurance, crop insurance, and other specialized coverage.
These are some of the common types of risks covered by general insurance in India. However, it is important to note that the coverage and terms may vary among insurance providers and specific policies. It is advisable to carefully read the policy documents and consult with an insurance expert to understand the coverage details and exclusions before purchasing a general insurance policy.

4.    How does general insurance differ from life insurance?
General insurance and life insurance are two distinct types of insurance products in India, each serving different purposes and covering different risks.
General Insurance: General insurance provides coverage for a range of non-life risks. It is designed to protect individuals, businesses, and assets from financial losses arising due to unforeseen events such as accidents, natural disasters, theft, or liability claims. General insurance policies have a defined tenure, typically one year, and the premium is based on the assessed risk factors. Examples of general insurance include motor insurance, health insurance, home insurance, travel insurance, and liability insurance. The coverage provided by general insurance is generally limited to a specific period and does not offer any maturity or survival benefits.

Life Insurance: Life insurance, on the other hand, is a long-term insurance product that provides financial protection to individuals and their families in the event of death or disability. It offers a death benefit or a sum assured to the beneficiaries or the policyholder’s dependents. Life insurance policies can also provide maturity benefits if the insured survives the policy term. It serves as a financial tool for income replacement, wealth creation, and estate planning. Life insurance policies can be further categorized into term insurance, whole life insurance, endowment plans, unit-linked insurance plans (ULIPs), and pension plans.

In summary, general insurance covers non-life risks for a specific period and focuses on providing financial protection against unforeseen events, while life insurance provides long-term protection, financial security, and savings benefits for individuals and their families, including death benefits and maturity benefits. It is important for individuals to assess their needs and choose the appropriate insurance product or a combination of both to ensure comprehensive coverage.

5.    What are the common types of general insurance policies?
In India, there are several common types of general insurance policies that cater to different risks and needs of individuals and businesses. Here are some of the key types of general insurance policies:

1.    Motor Insurance: This includes policies for cars, motorcycles, and commercial vehicles. It provides coverage against damages or losses caused by accidents, theft, fire, or third-party liability.

2.    Health Insurance: Health insurance policies cover medical expenses incurred due to illness, accidents, hospitalization, and surgical procedures. They can include individual health insurance, family floater plans, senior citizen plans, and critical illness coverage.

3.    Home Insurance: Home insurance policies protect homeowners against losses or damages to their property and belongings due to events like fire, theft, natural disasters, or other perils. It can cover both the structure and contents of the home.

4.    Travel Insurance: Travel insurance provides coverage for individuals traveling within India or abroad. It includes protection against trip cancellation or interruption, medical emergencies, loss of baggage, or personal accidents.

5.    Fire Insurance: Fire insurance policies cover damages or losses caused by fire to properties, including residential and commercial buildings, factories, or warehouses.

6.    Liability Insurance: Liability insurance provides protection against legal liabilities arising from third-party claims. It includes policies like public liability insurance, professional indemnity insurance, and product liability insurance.

These are just a few examples of the common types of general insurance policies in India. It’s important to carefully assess your needs, understand the coverage, terms, and conditions of the policies, and choose the ones that best suit your requirements.

6.    How do I choose the right general insurance policy for my needs?
Choosing the right general insurance policy in India requires careful consideration of your needs and an understanding of the available options. Here are some key factors to consider when selecting a policy:

1.    Assess your requirements: Start by evaluating your specific insurance needs. Determine the risks you want to cover and the level of coverage required. For example, if you own a car, motor insurance is essential, while if you have a family, health insurance becomes crucial.

2.    Research and compare: Conduct thorough research on different insurance companies and their policies. Compare the coverage, features, exclusions, claim settlement process, and premium rates. Look for insurers with a good track record, strong financial stability, and a high claim settlement ratio.

3.    Read policy documents: Carefully read the policy documents, terms, and conditions to understand what is covered and excluded. Pay attention to limits, deductibles, waiting periods, and claim procedures. Ensure that the policy aligns with your specific requirements and provides adequate coverage.

4.    Seek expert advice: If you find it challenging to navigate through various policies, consider seeking advice from an insurance expert or a trusted insurance advisor. They can provide personalized recommendations based on your needs and help you make an informed decision.

5.    Customer reviews and feedback: Look for customer reviews and feedback about the insurer’s claim settlement process, customer service, and overall experience. This can provide insights into the insurer’s reputation and reliability.

6.    Consider the premium: Compare the premium rates of different policies, but remember that the lowest premium doesn’t always indicate the best policy. Evaluate the coverage offered and the insurer’s reputation before finalizing your decision.

By considering these factors and conducting thorough research, you can make an informed decision and choose the right general insurance policy that meets your specific needs in India.

7.    How are general insurance premiums calculated?

Premiums for general insurance policies are determined based on several factors that assess the risk associated with the insured item or individual. Here are the key factors considered:

1.    Risk exposure: Insurers evaluate the risk exposure of the insured item, such as a vehicle, property, or health. This includes factors like the location, age, condition, and vulnerability to risks like accidents, damage, or theft.

2.    Coverage and limits: The extent of coverage and policy limits chosen by the insured also affect the premium. Higher coverage or lower deductibles often result in higher premiums.

3.    Claim history: Insurers review the insured’s past claims history. If the insured has made previous claims, it may indicate a higher risk profile and result in increased premiums.

4.    Underwriting factors: Underwriting factors like age, occupation, lifestyle habits, health conditions, and creditworthiness are considered for individual policies. These factors help assess the probability of claims and determine the premium.

5.    Statistical data: Insurers rely on historical data and actuarial analysis to estimate the likelihood of claims. Statistical models and industry-wide data on risks, losses, and trends are used to calculate premiums.

6.    Expenses and profit margin: Insurers consider their operating expenses, including administration costs, commissions, and profit margins. These are factored into the premium calculation.

7.    Government regulations: Insurance premiums in India are also influenced by regulatory guidelines set by the Insurance Regulatory and Development Authority of India (IRDAI). These regulations ensure fair pricing and protect policyholders’ interests.

Insurers use complex mathematical models, statistical techniques, and actuarial expertise to determine premiums that adequately cover the risk while ensuring the insurer’s financial stability. It’s important to note that each insurer may have their specific methods and considerations, so premiums can vary between companies. Consulting with an insurance professional or actuary can provide further insights into the specific premium calculation methods used by different insurers.

8.    What factors can affect the cost of general insurance premiums?

Factors that can affect the cost of general insurance premiums in India. Insurance premiums are determined by assessing the risk associated with the insured item or individual. Here are some key factors that influence the cost of general insurance premiums:

1.    Type of Coverage: The specific type of coverage chosen plays a significant role in determining the premium. Different policies have varying levels of coverage and features, and premiums are adjusted accordingly. For example, comprehensive coverage for a vehicle will have a higher premium compared to third-party liability coverage.

2.    Sum Insured or Policy Limits: The sum insured or policy limits define the maximum amount an insurer will pay in the event of a claim. Higher limits or a larger sum insured will result in higher premiums as it increases the insurer’s potential liability.

3.    Risk Factors: Various risk factors associated with the insured item or individual can affect the premium. For example, in motor insurance, factors like the make and model of the vehicle, age of the vehicle, and the insured’s driving history and age can influence the premium. Similarly, for health insurance, factors such as age, pre-existing medical conditions, and lifestyle habits can impact the premium.

4.    Deductibles or Excess: The deductible is the amount the insured needs to pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower the premium as the insured is assuming a greater portion of the risk.

5.    Claim History: The insured’s previous claim history can affect the premium. If the insured has a history of frequent claims, it may indicate a higher risk profile and result in increased premiums.

6.    Location: The geographical location of the insured can impact the premium. Areas prone to natural disasters, high crime rates, or accidents may have higher premiums to account for the increased risk.

7.    Insured’s Profile: Factors such as age, occupation, lifestyle habits, and health conditions can influence the premium. Insurers assess the individual’s risk profile to determine the likelihood of claims and adjust the premium accordingly.

8.    No-claim Bonus: Insurers often offer a no-claim bonus as a reward for not making any claims during the policy period. This can result in a discount on the premium for the following year.

9.    Market Conditions: Overall market conditions and competition within the insurance industry can impact premiums. Changes in economic factors, inflation rates, and industry trends can influence premium pricing.

It’s important to note that each insurer may have their specific underwriting criteria and premium calculation methods. Consulting with insurance professionals or comparing quotes from different insurers can help individuals understand the factors affecting premiums and choose the most suitable policy at a competitive price.

9.    How can I make a claim on my general insurance policy?

Here are the general steps to follow when making a claim:

1.    Contact your Insurance Company: Notify your insurance company as soon as possible after the incident occurs or when you become aware of the claimable event. Provide them with all the necessary details, such as your policy number, contact information, and a brief description of the incident.

2.    Fill the Claim Form: The insurance company will provide you with a claim form. Fill it accurately and provide all the required information. Include supporting documents like photographs, police reports (if applicable), medical reports (if applicable), and any other relevant documents related to the claim.

3.    Submit Documents: Compile all the necessary documents requested by the insurance company, such as proof of loss, invoices, bills, or any other supporting evidence. Ensure that you submit all the documents within the specified time frame mentioned in your policy.

4.    Follow-up with the Insurance Company: Stay in touch with your insurance company and provide any additional information or documents they may require during the claim assessment process. Maintain a record of all communication, including the names of the representatives you speak with and the dates of the conversations.

5.    Claim Assessment: The insurance company will evaluate your claim based on the provided information and supporting documents. They may conduct investigations or request further documentation if needed.

6.    Settlement: If your claim is approved, the insurance company will offer you a settlement amount based on the terms and conditions of your policy. They will communicate the settlement details to you. In some cases, the insurer may directly settle the claim with the service provider, such as a hospital or garage, based on the cashless facility.

7.    Claim Payment: Once you agree to the settlement offer, the insurance company will initiate the claim payment. The payment will be made as per the agreed terms, which could be a direct transfer to your bank account or through a cheque.
It’s important to thoroughly read and understand the claim process mentioned in your insurance policy. Each insurance company may have specific requirements and procedures. Promptly reporting the claim, providing accurate information, and cooperating with the insurer can help expedite the claim settlement process.

10.     What is the process for renewing a general insurance policy?

Follow these steps:

1.    Review Policy Details: Assess your existing policy coverage, terms, and conditions.

2.    Contact Insurance Provider: Get in touch with your insurance company or agent.

3.    Provide Required Information: Submit the necessary details for renewal, such as policy number, personal information, and any changes in requirements.

4.    Premium Payment: Pay the renewal premium within the specified time frame.

5.    Policy Renewal Confirmation: Once the payment is processed, you will receive a renewed policy document and confirmation of the renewal.
Remember to renew your policy before the expiration date to avoid any coverage gaps. It is advisable to review your insurance needs and compare policies to ensure you have appropriate coverage at the time of renewal.

11.     What is the role of an insurance agent or broker in the general insurance sector?

In the general insurance sector in India, an insurance broker plays a crucial role as an intermediary between the insurance buyer and the insurance company. As an expert in insurance, the broker acts in the best interest of the client and offers professional advice on insurance products and coverage options. They assess the insurance needs of individuals or businesses, analyze various insurance policies available in the market, and provide recommendations tailored to the client’s requirements. Insurance brokers also assist in negotiating terms, arranging policy issuance, and managing claims. Their expertise, knowledge of the insurance market, and access to multiple insurance providers make them valuable in helping clients make informed decisions and obtain the most suitable and cost-effective insurance coverage.

As electric vehicles (EVs) gain popularity in India, it becomes crucial for owners to ensure they have adequate insurance coverage.

As electric vehicles (EVs) gain popularity in India, it becomes crucial for owners to ensure they have adequate insurance coverage. Insuring EVs requires specific considerations due to the unique nature of these vehicles and their components. Here are top five tips to keep in mind when insuring EVs in India.

Coverage for battery

The battery is the heart and soul of an electric vehicle and it represents a significant portion of the vehicle’s cost. Make sure your policy offers coverage for the expensive battery pack to safeguard against unexpected repair or replacement costs in case of damage, theft, or loss. Review the terms and conditions to ensure adequate protection.

Specialised repair network

Select an insurance provider that has tie-ups with a specialised repair network capable of handling EV-specific repairs. Having access to a qualified network will ensure that your vehicle receives the best possible care, minimising downtime and ensuring quality repairs.

Determine the insured value

To ensure comprehensive coverage for your electric vehicle, accurately determine the insured value. Consider factors such as the cost of the vehicle, battery, and any additional accessories or modifications you have made. By evaluating the total value of your EV, you can ensure that you are adequately covered against theft or total loss. Regularly reassess the insured value as the vehicle’s value depreciates over time.

Coverage for charging equipment

If you have invested in a dedicated charging station or other charging equipment for your electric vehicle, check if your insurance policy covers it for any damage, theft, or liability concerns. Verify the extent of coverage and ensure it aligns with your requirements.

Personal accident cover

Confirm whether your insurance policy provides personal accident cover for both the driver and passengers of the electric vehicle. Ensure that the policy offers adequate protection and consider additional coverage if necessary.

Additional considerations

No claim bonus (NCB): Inquire if the insurance company offers a No Claim Bonus for electric vehicles as it gives a discount on the premium for every claim-free year.

Third-party liability: Ensure that your insurance policy covers third-party liability. This coverage protects you from legal and financial liabilities in case of an accident involving another vehicle or property. It is a mandatory requirement for all vehicles on Indian roads.

Government incentives: Some states or central government schemes may offer special benefits or discounts on insurance premiums for EVs. Take advantage of these to reduce your insurance expenses.

MADE FOR EVs

* Go for an insurance provider that has tie-ups with a specialised repair network capable of handling EV-specific work

* If you have a dedicated charging station, check if your policy covers it for any damage, theft, or liability concerns

The writer is co-founder & director, Policy Ensure

Pankaj Vashistha is a seasoned business professional with over 30 years of experience in multiple industries such as hospitality, office automation, consumer durables, insurance, and telecommunications.

He has worked with well-known corporate names like Tata, Reliance, and Gillette in various parts of India, which gave him kaleidoscopic insights into the real India and its enormous business opportunities, talent pool, and distribution network.

As the CEO and co-founder of Policy Ensure, Pankaj is responsible for its impressive ramp-up in terms of regional presence, alliances, operational growth, and strengthening of professional headcount/teams.

His impeccable understanding of the distribution network and building effective teams across this network has enabled Policy Ensure’s business growth in tier-2/3 markets, leading to series A-B funding and more than 100% growth (YoY) at a sustainable level.

Pankaj’s success as a professional comes from his belief in holistic well-being, which includes fitness and positive affirmations to set the rhythm for the day and for life.

He believes that the manner in which something is carried out will result in a change and that the ability to see the big picture is essential for success.

Overall, Pankaj’s entrepreneurial spirit, strategic thinking, and leadership skills have helped him in his journey from a traveling salesman to the CEO of a successful start-up.

Pankaj Vashistha has a rich background with over 30 years of experience, starting his career in 1992-93 in hotel management and then transitioning into various industries such as office automation, telecom, consumer durables, FMCG, and insurance.

His expertise lies in distribution-driven backgrounds, where he has played a key role in establishing strong distribution networks for the companies he worked with.

The inspiration behind starting Policy Ensure was twofold. Firstly, Pankaj recognized the immense opportunities available in the insurance sector, considering the low penetration rate of only 3%. With such a vast untapped market, he saw significant potential for growth and development.

Secondly, Pankaj observed that insurance primarily catered to metro cities and affluent individuals, leaving out a substantial portion of the population residing in Class B and smaller cities.

He also understood that insurance plays a crucial role in social security. Combining these factors, he identified a significant opportunity to bridge the gap and provide insurance solutions to a wider range of customers.

Please tell us a little about your entrepreneurial journey

Pankaj embarked on his entrepreneurial journey in 2017 with the establishment of Policy Ensure. Initially, the company had a small team of only five people, but through dedicated efforts and consistent growth, they have expanded to a workforce of 90 individuals.

Starting from a single location, Policy Ensure has now extended its presence to 32 locations, with plans to further expand to a minimum of 100 locations in the upcoming financial years.

Throughout his entrepreneurial journey, Pankaj has successfully built and scaled Policy Ensure, growing both the team and the company’s reach.

With a focus on leveraging technology and expanding their presence, Policy Ensure aims to provide comprehensive insurance services and strengthen their position in the industry.

Kindly brief us about Policy Ensure, its specialization, and the services that it offers

Policy Ensure is an insurance distribution company that aims to increase insurance penetration in India, particularly in B and C cities. Unlike many broker houses that focus solely on technology-driven approaches, Policy Ensure has developed a unique phygital model .

The company believes that distribution plays a crucial role in expanding insurance coverage, and technology acts as a facilitator rather than the sole driver of operations. Policy Ensure recognizes the importance of transparency in the insurance industry and aims to address the issues of mistrust and mis selling that have emerged over the years.

To achieve its goals, Policy Ensure adopts a phygital model, which involves having a physical presence at each location they serve. This physical presence allows for personalized interactions and builds trust with customers. Additionally, Policy Ensure provides a user-friendly technology platform that enhances the ease of doing business and ensures transparency throughout the insurance process.

By combining distribution expertise, technology facilitation, and a commitment to transparency, Policy Ensure strives to increase insurance penetration in India and cater to the needs of customers in B and C cities.

What makes Policy Ensure different from other insurance providers in the market?

Policy Ensure distinguishes itself from other broker houses in India by adopting a distribution driven approach.

While many brokers focus on being technology-driven intermediaries, Policy Ensure has developed a phygital model where physical presence gives trust and technology gives transparency and better choices.

How has technology helped Policy Ensure streamline the insurance process for customers?

Technology has played a crucial role in helping Policy Ensure streamline the insurance process for customers, addressing one of the major challenges faced by the insurance industry—mis-selling.

Insurance products are complex contracts with various coverage options, making it essential for customers to have a clear understanding of what they are purchasing.

Policy Ensure utilizes technology to provide customers with a transparent and user-friendly platform. Through this technology, customers have access to a digital contract that outlines the details of the insurance product, including coverages and premiums. This empowers customers to make informed decisions based on their specific needs and preferences.

What steps has Policy Ensure taken to ensure that customer data is kept safe and secure?

By leveraging technology, Policy Ensure ensures that customers have a transparent view of the insurance products available to them.

They can choose their own coverages and premiums, customizing the policy according to their requirements. This eliminates the risk of mis-selling and enables customers to have greater control and understanding throughout the insurance purchasing process.

In summary, technology has enabled Policy Ensure to simplify the insurance process, enhance transparency, and empower customers to make informed choices.

By providing a user-friendly digital platform, Policy Ensure ensures that customers have a clear understanding of the insurance products they are purchasing, ultimately improving the overall customer experience.

How does Policy Ensure plan to expand its offerings in the future?

Policy Ensure plans to expand its offerings by introducing new verticals and diversifying its product portfolio.

Currently focused on general insurance, they intend to add health insurance and life insurance as additional verticals in the coming financial year.

By expanding their product range, Policy Ensure aims to cater to a broader customer base and increase their market presence.

What challenges have you faced in launching and growing Policy Ensure, and how have you overcome them?

Regarding the challenges faced during the launch of Policy Ensure, Pankaj Vashistha mentions two significant hurdles.

The first challenge was navigating the regulatory landscape of the insurance industry. As a highly regulated market, it was crucial for Policy Ensure to ensure compliance with the regulatory requirements, which involved a time-consuming process.

However, by adhering to the regulations and ensuring everything was done properly, they were able to overcome this challenge.

The second challenge was related to internet penetration, particularly in the B and C class cities. Availability of a reliable internet connection was crucial for their business model, which combined physical presence with technology.

With the growth of telecom companies and the government’s increasing focus on the insurance sector, Policy Ensure has witnessed improvements in internet penetration, making their operations more successful.

By addressing these challenges, Policy Ensure has been able to establish itself in the market and expand its reach.

What was the inspiration behind turning into an entrepreneur

The biggest inspiration behind Pankaj decision to become an entrepreneur was the desire to pursue what he truly loved doing.

From the very beginning, he extensively researched various organizations and fields, seeking a time when he could align his passion with his work.

The inspiration stemmed from a deep longing to have the freedom to shape his own path and operate according to his own vision.

Pankaj recognized that starting his own business would allow him to work in a manner that resonated with his unique thought process and approach.

Ultimately, the inspiration behind becoming an entrepreneur was driven by the aspiration to have autonomy, follow his passions, and chart his own course.

By establishing his own business, Pankaj found the opportunity to align his work with his personal values and create a venture that reflected his own mindset and aspirations.

What role do you see technology playing in the future of the insurance industry?

Technology is poised to play a pivotal role in the future of the insurance industry, particularly in terms of enhancing transparency and expanding market penetration.

Currently, there is a lack of awareness and understanding among potential customers about insurance products and their benefits.

However, with the increasing reach of the internet and technology platforms, individuals, including those in rural areas or with limited access to information, will have the means to make informed decisions about the insurance coverage they need.

As technology continues to advance and reach underserved areas, it will facilitate greater transparency in the insurance buying process.

Customers will have access to information about various insurance products, their coverage options, and pricing, empowering them to select the most suitable policies for their specific needs.

For instance, individuals residing in remote villages, who may not have had exposure to insurance concepts previously, can now leverage technology, including the internet and social media platforms, to gain awareness and understanding about insurance.

What advice would you give to aspiring entrepreneurs who are interested in starting their own insurance business?

The advice Pankaj Vashistha would give to entrepreneurs interested in starting a business is to prioritize patience.

He believes that having patience is crucial in the journey of entrepreneurship. Success may not come immediately, and there might be delays and obstacles along the way, but with patience, one can persevere and eventually achieve their goals.

Starting a business requires dedication, hard work, and resilience. It is essential to understand that building a successful venture takes time and effort.

Entrepreneurship is a long-term commitment, and setbacks and challenges are inevitable. However, by maintaining patience, entrepreneurs can navigate through the ups and downs, learn from their experiences, and continue moving forward.

Pankaj Vashistha emphasizes that while success might not come overnight, having patience and staying committed to their vision will eventually lead to achievements.

It is important to stay focused, adapt to challenges, and keep pushing forward, knowing that success is within reach.

What are your long-term goals for Policy Ensure, and how do you plan to achieve them?

The long-term goal for Policy Ensure is to become the leading insurance distribution company in India. Pankaj Vashistha envisions achieving this goal within the next three years.

The company is well on track to accomplish this ambition as it plans to expand from 32 locations to 300 locations in just two years.

Pankaj Vashistha strongly believes that distribution plays a vital role in the success of any business. By focusing on expanding their physical presence across different regions, Policy Ensure aims to establish a strong distribution network and enhance their reach to customers.

To achieve their long-term goals, Policy Ensure will continue to prioritize their distribution strategy and invest in physical locations across India.

By effectively reaching customers in various cities and towns, they aim to increase insurance penetration and become the preferred choice for insurance distribution.

What are your success tips for young and aspiring entrepreneurs?

Pankaj’s success tips for young and aspiring entrepreneurs revolve around the importance of patience, and focus. Here are the key success tips:

Patience: Entrepreneurship is a journey that requires patience. Success may not come immediately, and setbacks and challenges are inevitable.

Maintain patience and persevere through obstacles. Remember that delayed success is not a failure, but rather an opportunity to learn and grow. Patience allows you to stay committed to your goals and overcome hurdles along the way.

Focus: Stay focused on your long-term goals and vision. Avoid getting distracted by short-term setbacks or trends.

Maintain clarity and direction, and consistently work towards your objectives. Focusing on your core mission will help you make strategic decisions and effectively navigate the entrepreneurial journey.

By embracing patience, and focus, young and aspiring entrepreneurs can lay a strong foundation for their ventures.

These qualities contribute to resilience, adaptability, and the ability to sustain long-term growth. Remember that success in entrepreneurship often requires time and dedication, so stay committed to your goals and keep pushing forward.

As choosing the right health insurance at a lower premium is the preferred choice – Rahul M Mishra, Co-Founder & Director of Policy Ensure, shared insights and tips on various methods of maximising health coverage while minimising the premium in an exclusive interview with ZeeBiz.

Many people have realised the importance of health insurance after the Covid pandemic and as the cost of medical facilities are skyrocketing health insurance is the only thing that has got our back during health emergency. As choosing the right health insurance at a lower premium is the preferred choice – Rahul M Mishra, Co-Founder & Director of Policy Ensure, shared insights and tips on various methods of maximising health coverage while minimising the premium in an exclusive interview with ZeeBiz.

Q: How can people minimise the premium on health insurance?

A: To minimise the premium on health insurance one can opt for a high-deductible health insurance plan. A deductible basically is the amount you pay before the insurance coverage kicks in. Higher deductibles result in lower premiums.

Secondly, it is important to compare insurance providers. Compare the premiums, deductibles, coverage limits, waiting periods, and other terms and conditions before making a decision. Look for reputed insurance companies with a good claim settlement record.

Also, don’t forget to evaluate family floater plans as they can provide coverage for the entire family at a lower premium compared to individual policies. 

One other important thing is always to consult with health insurance experts or advisors who can assess your specific needs, analyze available options, and recommend the most suitable plan for maximum coverage with minimum premium.

Q: How can one increase their health coverage by keeping the premium lower? 

A: There are various options that can enhance one’s health coverage without having much impact on the premium.

One can consider top-up plans. Top-up plans provide additional coverage to your base health insurance and enhance your coverage at a lower cost. To put things into perspective, if you have a base policy with a sum insured of Rs 5 lakh and opt for a top-up plan with a deductible of Rs 3 lakh and a sum insured of Rs10 lakh, any expenses beyond Rs 3 lakh will be covered by the top-up plan.

Secondly, people can also explore the option of super top-up plans which are similar to top-up plans but provide coverage on an aggregate basis. These plans cover the total expenses in a policy year that exceed the chosen threshold. For instance, if you have a super top-up plan with a threshold of Rs 5 lakh and a sum insured of Rs 10 lakh, it will cover expenses beyond Rs 5 lakh in a policy year, even if they occur in multiple hospitalisations.

Another option can also be a no-claim bonus, where the sum insured increases for each claim-free year. Consider policies with such benefits as they can enhance your coverage without additional premiums.

Always remember, while minimizing premiums is essential, it’s equally crucial to ensure that the coverage meets your healthcare needs adequately. Assess your requirements, compare plans, and choose wisely to strike a balance between coverage and affordability.

Q: How can a person with chronic health conditions get maximum coverage at minimum premium? 

A: I understand that individuals with chronic health conditions may face challenges in obtaining maximum coverage at minimum premiums. However, there are a few strategies that can help maximize coverage while keeping the premiums affordable:

One should look for health insurance plans that offer coverage for pre-existing conditions. While such plans may have waiting periods, they can provide coverage for chronic conditions after the waiting period is over.

Secondly, they should opt for disease-specific plans which may offer better coverage for the particular condition and can be beneficial for individuals with chronic health issues.

Thirdly, they can consider individual plans as in some cases, individual health insurance plans may offer more comprehensive coverage for chronic conditions compared to group plans.

Q: Should an individual opt for add-ons in a health cover to lower the premium? 

A: I would recommend considering add-ons or riders to enhance your health insurance coverage at a lower premium. Add-ons provide additional benefits and coverage beyond the standard health insurance policy. 

To get the full benefit of health coverage at a lower premium one should consider the cost of the add-ons in relation to the additional benefits they offer. Compare the premium, and increase with the potential coverage and benefits to determine if it aligns with your budget and provides value for money.

Secondly, it is generally advisable to opt for add-ons at the time of purchasing a health insurance policy. This ensures that you have comprehensive coverage from the beginning. However, if you didn’t include add-ons initially, you can explore adding them during policy renewal. Keep in mind that any waiting periods associated with the add-ons will still apply.

It should be noted that one should carefully evaluate their requirements, compare available add-ons, consider the associated costs, and consult with an expert to make the best decision for maximum coverage within their desired premium range.

A comprehensive car insurance policy may not be adequate to protect your car against the damage that the monsoon can cause to it. Unless you have certain specific add-on covers, your insurer will not pay a penny to fix your car engine if damaged due to waterlogging. In case you need to change your seats or replace your windshield, the insurer typically pays only a part of it. That’s where add-on covers or riders come in handy.

Why damages are more frequent in monsoon?

“During heavy rainfall or waterlogging or floods, water can enter the vehicle and seep into the engine and damage it. This is one of the most common claims during monsoons. The engine is one of the most expensive parts of the vehicle and repairing or replacing it can be costly,” Kunal Jha, Head – Motor Product and Actuarial, Go Digit General Insurance.

“Trees or poles uprooted by heavy rains can also severely damage the car exterior. Multiple such instances are witnessed during heavy rains since many vehicles in India are parked on roads,” he added.

“Even if a car is not submerged in water, heavy rains can cause water damage to the car’s interior and electrical components. Water seepage can damage the car’s upholstery, dashboard, and electrical wiring, leading to costly repairs,” said Rahul M Mishra, Co-Founder and Director, Policy Ensure

During heavy rains, visibility on the roads can be significantly reduced, leading to accidents. The risk of skidding and hydroplaning increases as the roads become slippery, added many experts.

How car insurance add-ons cover plug the coverage gap
Add-ons are optional coverage that can be added to a comprehensive car insurance policy to enhance its coverage and provide additional protection. Here are the four add-ons that are a must during the monsoon season.

Why is Engine Protection Cover add on critical?

It is crucial to buy an engine protector add-on to safeguard your car engine from losses due to liquid ingress. If you repeatedly try to start your car while it is submerged in water, the car could break down. Repairing the engine could be costly. Such engine damages are not payable under a regular motor insurance policy as it is considered consequential damage. “The engine protector covers your vehicle in the event of a hydrostatic lock, wherein the water might seep into the vehicle’s air valve and block the engine,” said Nitin Kumar, Head – Motor Insurance, Policybazaar.com.

Roadside Assistance comes to your rescue during an emergency

Vehicle breakdowns are most common during monsoon season. In case you are stranded in a waterlogged area and unable to move your car, opting for 24×7 Roadside Assistance add-on cover can be beneficial, said Pooja Yadav, Chief Product Officer, Zuno General Insurance (Erstwhile Edelweiss General Insurance).

This cover offers prompt towing services by a professional that prevents further harm to your vehicle, added Animesh Das, Chief Underwriting Officer, ACKO.

Zero-depreciation Cover ensures total coverage in parts replacement

If you have a Zero-depreciation cover, you will be reimbursed the entire amount of the damage, and not just the depreciated value of the damaged components. “With this add-on, the policyholder can recover the maximum amount without considering depreciation, as the insurance company covers the total cost of the replacement parts,” said Aftab Chaz, Associate Director, and Business Head at Elephant.in (Alliance Insurance Brokers)

Cover for Consumable add-on ensures no payment even for consumables

This add-on covers the cost of consumable items such as engine oil, coolant, and brake oil, which are required during repairs due to damages caused by floods, water-logging, or accidents during the monsoon season.

While there are other add-on covers, the ones mentioned above are the most used by consumers due to their relevance and significance during monsoons.

Who should buy these car insurance add-on covers for monsoon season?

“It is important for vehicle owners to carefully consider their needs and the location they reside in before opting for any add-ons,” said Chaz.

“If you live in an area that is prone to flooding or water-logging during the monsoon season (such as Mumbai, Goa, Bangalore), the Engine Protect add-on and Consumables Cover add-on can be particularly useful as they provide coverage for damages caused to the engine and consumable items,” said Mishra.

“Coastal regions often experience heavy rainfall and face the risk of waterlogging and high levels of humidity. Water damage and the corrosive effects of saltwater can be significant concerns. engine protection cover and consumables cover can help mitigate the risks associated with these conditions,” said Amit Goel, Director & Principal Officer at Raghnall Insurance Broking & Risk Management Pvt. Ltd.

“Places with inadequate drainage infrastructure can lead to water accumulation on roads, increasing the likelihood of accidents due to slippery surfaces. In such areas, the Zero Depreciation Cover can be beneficial, as it ensures a higher payout for car parts without factoring in depreciation,” Goel added.

If you live in an area where immediate assistance during emergencies, such as towing or on-site repairs, is scarce or takes time to arrive, having roadside assistance cover becomes essential. “This cover provides peace of mind and ensures prompt help during breakdowns or accidents, especially in challenging weather conditions.

“People living in hilly areas, too, witness cases of landslides during monsoons. It makes immense sense to consider a comprehensive motor cover with suitable add-ons to provide complete protection to your vehicle, said Jha.

Here are a few tips to help you navigate the world of motor insurance while ensuring you choose the most suitable policy according to your requirements

Purchasing motor insurance for the first time requires careful consideration and understanding of the available options. As a first-time buyer, making an informed decision that provides the right coverage for your new car is important. This story looks at the top five tips that can help you navigate the world of motor insurance while ensuring you choose the most suitable policy according to your requirements.

Understand your requirements: Before buying motor insurance, assessing your requirements is crucial. You must first evaluate factors such as the age of your vehicle (especially when buying a second-hand car for the first time), its usage pattern, and the budget for premiums. Consider whether you need comprehensive coverage or third-party liability coverage. Comprehensive coverage offers protection against damages to your vehicle and covers third-party liability. On the other hand, third-party liability coverage only covers damages caused to others. Hence, you should understand your needs and evaluate your budget to determine the type and coverage level that best suits you.

Research and compare: Always look for reputable insurers in the market with a good track record of customer satisfaction and reliable claim settlements. Do not zero in on the policy offered by a car dealer. Generally, car dealers have a tip-up with only a few insurers, and you might pay additional premiums for the same coverage you get from other insurers at a lower price. Hence, use online platforms for insurance policy comparison. Gather information about premiums, coverage benefits, and customer reviews.

Rahul M Mishra, Co-Founder & Director of Policy Ensure, said: “While comparing policies, pay attention to the coverage options, deductibles, and additional features provided. Compare premiums from multiple insurers to ensure you find a competitive price. Remember, the cheapest policy may not always offer the most comprehensive coverage, so balance affordability and the level of protection you require.”

Opt for the right add-on: You must consider add-on options that enhance your coverage. For instance, go for add-ons that include zero depreciation cover.  This add-on ensures that your insurer reimburses the full value of damaged vehicle parts without considering depreciation. Engine protection cover can be beneficial, especially if you live in an area prone to waterlogging that can cause damage to the engine else; you may not require such an add-on as it will not add much value to your policy. Roadside assistance is another useful add-on that can provide support in case of breakdowns or emergencies, especially if you drive your vehicle on long routes regularly.

Check Insured Declared Value (IDV):  It is essential to consider IDV when buying motor insurance. It is the maximum claim amount you will receive in the event of total loss or theft of your vehicle. Mishra said, “You must ensure that the IDV is accurately calculated based on the current market value of your vehicle. Overestimating or underestimating the IDV can have consequences during the claims process. You should consult with the insurance provider or use online tools to determine the appropriate IDV for your vehicle. This will help you receive fair compensation in case of a significant loss and avoid any financial setbacks.”

Understand policy terms: Before finalising your motor insurance purchase, you must thoroughly read and understand the policy terms, conditions, and exclusions. Familiarise yourself with the claim process, renewal procedures, and any limitations or restrictions the insurer imposes.

When considering the factors that can affect your insurance premiums, aspects such as age, gender, and driving record often come to mind. However, there are other lesser-known factors that can impact the cost of your insurance, including your health.

Here are five surprising factors, including health-related considerations, that can influence your insurance premiums:

Your occupation

While it may seem unrelated to health, your occupation can have an impact on your insurance premiums. Jobs involving high-risk activities or hazardous work environments, such as mining or aviation, may result in higher insurance premiums. Insurers perceive these professions as more dangerous, increasing the likelihood of injury or death.

Your hobbies

Engaging in high-risk hobbies like skydiving, rock climbing, or motor racing can also affect your life insurance premiums. Insurance companies view these activities as potentially dangerous, leading to a higher premium to cover the associated increased risk. Such hobbies may raise concerns about potential injuries or accidents.

Your medical history

Your medical history, including pre-existing conditions and family health background, plays a significant role in determining your insurance premium. Insurers consider individuals with pre-existing medical conditions or a family history of illnesses as higher risks. For example, a family history of heart disease or cancer may lead to higher premiums due to the perceived likelihood of developing these conditions.

Your lifestyle habits

Certain lifestyle habits can impact your insurance premium, primarily due to their effect on health. Smoking, excessive drinking, and leading a sedentary lifestyle can increase the risk of developing health problems. Smokers, for instance, are known to have a higher risk of lung cancer and respiratory diseases, resulting in higher premiums. Similarly, individuals leading sedentary lifestyles may be more prone to obesity, diabetes, and other health issues, which can also lead to increased insurance premiums.

Considering these factors, including the impact of your health on insurance premiums, is crucial. It’s important to be aware of how your occupation, hobbies, medical history, credit score, and lifestyle choices can influence the cost of your insurance coverage.

By understanding these lesser-known factors, you can make informed decisions and potentially reduce your risk, leading to lower insurance premiums. Prioritising a healthy lifestyle and addressing any pre-existing medical conditions can contribute to both your well-being and potential cost savings on insurance.

We sit down with Pankaj Vashishtha, Co-Founder & CEO, Policy Ensure to talk about how they are leveraging technology and insurance adoption.

Give us a brief background on Policy Ensure’s journey far since its inception.

Policy Ensure is an insurance broker under IRDA License with a strong presence in tier 2 and tier 3 towns across India . Since its inception, Policy Ensure has been dedicated to simplifying the process of buying insurance with the help of POSP’s and ensuring transparency. They offer a diverse portfolio of general insurance products, including health insurance, motor insurance, home insurance, and travel insurance. With a partner-centric approach, Policy Ensure focuses on providing comprehensive coverage, exceptional service, and leveraging technology to enhance the overall experience.

How is the brand ensuring tier 2 & tier 3 insurance penetration?

The Policy Ensure brand is actively working towards increasing insurance penetration in tier 2 and tier 3 towns in India. They have implemented several strategies to ensure accessibility and awareness of insurance products in these areas.

Extensive Distribution Network: Policy Ensure has established a robust distribution network with tie-ups with local people as POSPs, operating in tier 2 and tier 3 towns. This enables them to reach out to a wider customer base and provide personalized assistance in understanding and purchasing insurance products.

Regional Offices and Branches: To strengthen their presence, Policy Ensure has set up regional offices and branches in tier 2 and tier 3 towns. These physical locations serve as touchpoints for customers to inquire, seek assistance, and purchase insurance policies. By having a local presence, they can cater to the specific needs and preferences of customers in these areas.

Digital Initiatives: Recognizing the growing digital adoption in smaller towns, Policy Ensure has invested in user-friendly online platforms and mobile applications. They offer digital channels for POSPs to compare, advise the right product to customers and manage insurance policies conveniently from the comfort of their homes. This digital accessibility ensures that customers in tier 2 and tier 3 towns can easily access insurance products and services locally with POSPs (Pepartners).

Education and Awareness Programs: Policy Ensure conducts educational initiatives and awareness programs in collaboration with local people and also train the young who want to start their insurance business. These programs aim to educate individuals and create awareness about the importance of insurance, its benefits, and how it can financially protect them and their families.

How is technology transforming the way Insurance is perceived in India?

Technology is revolutionizing the perception of insurance in India by making it more accessible, efficient, and customer-centric. With the advent of digital platforms and mobile applications, individuals can now compare, purchase, and manage insurance policies conveniently.

Technology-driven solutions such as artificial intelligence and machine learning are streamlining underwriting processes, improving risk assessment, and enhancing customer experiences. Insurtech startups are introducing innovative insurance products and personalized offerings. Additionally, digital platforms provide transparency, simplified claims processes, and 24/7 customer support. Overall, technology is reshaping the insurance landscape in India, making it more user-friendly, efficient, and responsive to the evolving needs of customers.

How has technology impacted the insurance industry, and what are some specific advancements that have transformed the sector in recent years?

Technology has had a profound impact on the insurance industry in India, driving significant advancements and transforming various aspects of the sector. Some specific advancements that have reshaped the industry in recent years include:

Digital Platforms and Mobile Applications: The proliferation of digital platforms and mobile applications has revolutionized the way insurance is accessed and managed. Customers can now compare, purchase, and manage insurance policies conveniently from their smartphones or computers. These platforms provide easy access to information, policy documents, and digital payment options, streamlining the overall customer experience.

Data Analytics and Artificial Intelligence: The use of data analytics and artificial intelligence (AI) has transformed underwriting processes, risk assessment, and claims management. Insurers can now analyze vast amounts of data to make more accurate risk assessments, automate underwriting decisions, and detect fraudulent claims more effectively. AI-powered chatbots and virtual assistants also enhance customer support and claim processing efficiency.

Internet of Things (IoT) and Telematics: IoT devices and telematics have enabled insurers to offer usage-based insurance (UBI) and monitor policyholder behaviour in real-time. Connected devices, such as telematics devices in vehicles or wearable fitness trackers, provide valuable data that insurers can use to offer personalized coverage and incentivize healthier lifestyles or safer driving habits.

Blockchain Technology : Blockchain technology has introduced transparency, security, and efficiency to insurance operations. It facilitates secure and tamper-proof record-keeping, improves claims settlement processes, and simplifies policy administration. Blockchain also enables the creation of smart contracts, automating policy execution and claims settlements based on predefined conditions.

Insurtech Startups: The rise of insurtech startups has brought innovative solutions and new business models to the insurance industry. These startups leverage technology to address specific pain points, introduce personalized offerings, and enhance customer experiences. They often specialize in niche insurance segments or introduce disruptive technologies that challenge traditional insurance practices.

Digitized Claims Processes: Technology has accelerated and simplified the claims processes in insurance. Insurers now offer digital claims filing, document submission, and tracking mechanisms, reducing paperwork and enabling faster claim settlements. Automated claims assessment tools, powered by AI, streamline the evaluation of claims, improving accuracy and efficiency.

These advancements have transformed the insurance landscape in India, making insurance more accessible, efficient, and customer-centric. Insurers are leveraging technology to enhance operational efficiency, deliver personalized experiences, and offer innovative products and services that cater to the evolving needs of customers also with the help of insuretech driver insurance brokers millions of new young people are setting up their insurance distribution business.

With the rise of insurtech companies, how do traditional insurance companies adapt and leverage technology to stay competitive in the market?

Here are some ways traditional insurers are embracing technology:

Digital Transformation: Traditional insurers are undergoing digital transformation to streamline their operations, enhance customer experiences, and improve efficiency. They are adopting digital platforms, automating processes, and digitizing policy issuance, claims management, and customer service.

Online Presence and Mobile Apps: Traditional insurers are establishing a strong online presence by developing user-friendly websites and mobile applications. This allows customers to access information, compare policies, purchase coverage, and manage their policies conveniently from any device.

Data Analytics and AI: Insurers are leveraging data analytics and artificial intelligence to gain insights into customer behavior, preferences, and risks. This helps them customize products, personalize marketing efforts, optimize underwriting processes, and detect fraudulent claims more effectively.

Customer Engagement: Traditional insurers are focusing on improving customer engagement by adopting digital channels for communication and support. They are utilizing chatbots, online chat functionalities, and virtual assistants to provide prompt and personalized assistance to customers.

Collaboration with Insurtech Startups: Rather than perceiving insurtech startups as competition, traditional insurers are collaborating with them. They partner with insurtech companies to leverage their technological expertise, explore new business models, and co-develop innovative solutions to enhance their offerings.

IoT and Telematics Integration: Traditional insurers are incorporating the Internet of Things (IoT) and telematics technologies into their products. They offer usage-based insurance (UBI) and use IoT devices to monitor policyholders’ behaviour, such as driving habits or health data, allowing them to offer personalized coverage and pricing.

Embracing Blockchain: Traditional insurers are exploring the potential of blockchain technology for secure data management, smart contracts, and improving transparency in policy administration, claims settlement, and fraud detection.

Enhanced Cybersecurity Measures: As digitalization increases, traditional insurers are prioritizing cybersecurity to protect sensitive customer data from cyber threats. They invest in robust security systems, encryption technologies, and employee training to mitigate risks.

Give us an overview of the phygital model.

The phygital distribution model of Policy Ensure combines the advantages of physical presence with the convenience of digital platforms. It aims to provide a seamless and integrated customer experience by blending both physical and digital channels. Here’s an overview of how Policy Ensure implements the phygital distribution model:

Physical Presence: Policy Ensure establishes physical offices and branches in various locations, including tier 2 and tier 3 towns, to provide face-to-face interaction and personalized assistance to customers. These physical touchpoints serve as convenient locations for customers to inquire about insurance products, seek guidance, and receive support from knowledgeable agents.

Digital Platforms: Alongside its physical presence, Policy Ensure leverages digital platforms, such as its website and mobile application, to offer a range of online services. Pepartner (POSP)can access these platforms to gather information, compare policies, sell insurance, and manage their policies remotely, manage their portfolio and see their earnings with complete transparency.

Offline Assistance: For customers who prefer in-person interactions, Policy Ensure’s physical offices and branches offer personalized assistance from trained agents. Customers can visit these locations to receive guidance on policy selection, understand coverage details, clarify queries, and complete the necessary paperwork.

Integrated Experience: Policy Ensure ensures a cohesive experience by integrating its physical and digital channels. Customers with PE partner who initiate their insurance purchase online can seamlessly transition to the physical channel if they require additional support or prefer face-to-face interactions.

Car driving in college is more of a thrilling and exciting experience. It is essential for college students owning their car to have their insurance policy in place.

However, if you’re under the age of 25 years, then you are supposed to shell out more for premium than your adult counterparts. As when you are a college student and young in age, insurance companies put you in a higher risk bracket as young people tend to drive rashly and are more prone to accidents and collisions as compared to the adults and thus charged more premium.

In India, there are no such special discounts or rebates given to college students for buying a car insurance policy, but surely there are several other ways which can help college students to get a car insurance policy at much better rates.

Forbes Advisor India has prepared a list of best insurance companies which are providing low-cost premiums to college students or young drivers not directly but on the basis of other ways. And, also prepared a detailed guide which assists college students in purchasing an insurance policy for their beast.

Methodology

We analyzed the best insurance companies for college students on the basis of several factors, such as:

Car Insurance Discounts (30% of the score): These are the kind of direct discount which college students might receive such as online discount, no claim bonus discount and multi-year discount policy, multi-vehicle discounts, which can further drive down rates.

Fully or Semi Digitized Process (20% of the score): Digitized and paperless process makes it easy for young and hi-tech college students to apply for policy issuance, renewals and ensures smooth settlement for claims.

Pay As You Drive (PAYD) (30% of the score): This is relatively a new kind of discount which is only offered by a few insurance companies in India. It is entirely based on how many kilometers you plan to drive in a given timeframe.

Voluntary Deductibles (10% of the score): It is that portion of the claim which the policyholder agrees to pay out of their own pocket, and thus it leads to a heavy discount in premium.

Cashless Garages (10% of the score): The better the tie-up insurance companies have with these garages, the more it assures the chances of having a cashless claim settlement in the time of contingencies which makes it super easy for college students.

Tips to Reduce Car Insurance Premium Cost for College Students

In India, there are no direct discounts and subsidies available to college students for purchasing a car insurance policy like the way it is given in the western part of the world.

Rahul M Mishra, co-founder and director, Policy Ensure, said, “for students/college students, discounts are currently not available. Though as tech is being incorporated based on usage, running Kms/per month, some of the companies are giving discounts”.

Below mentioned are the certain ways via which college students or young drivers can reduce the burden of premium cost up to a certain level.

Type of coverage purchased: The premium cost totally depends upon the kind of coverage that college students might apply for. For instance, the cost of the third-party insurance policy is quite low and starts from INR 2094 per annum. But the premium cost for a comprehensive plan is higher because it provides extensive coverage.

Location: If the college student drives in small or tier-2 and tier-3 cities, then the premium cost would be much lower as compared to cost associated with metros and tier-1 cities.

Age: Age of car owner is also an important component which helps in deriving the premium cost of the vehicle. Younger drivers tend to pay more as they have been statistically proven to be more prone to road accidents. But as your age starts approaching 24 or 25 years or beyond that, rates start to get low, assuming they have a great record of driving.

Kinds of Discounts Available: The premium cost also get decreased if the insurance company offers various discounts such as on online purchase, professional discounts, usage-based discounts, multi-year discounts or no claim bonus.

Voluntary Deductibles: If the policyholder opts for a higher deductible, then it automatically reduces the cost of premium charged.

Automobile Association Discount: If you are a member in any of the listed five automobile associations in India, then the insurance company will extend you a discount which might go up to the 5% of the total premium cost.

Pay As You Drive: PAYD, has become one of the most trending and useful add-on features in car insurance, which can prove ultra-beneficial to college students as their driving demand is quite limited as compared to their older counterparts. In the PAYD feature, the policyholder has to shell out from the premium depending upon the kilometers which they drive. The lesser the kilometers driven; the premium cost gets reduced in the same proportion.

Above mentioned are a few smart ways to reduce car insurance premiums which can definitely help college students in bringing down the premium cost.

Rakesh Jain, CEO of Reliance General Insurance, believes ” Keep a clean slate and get rewarded with a No Claim Bonus. With no previous claims, you can save up to 50% on your Own-Damage premium. Choose the voluntary deductible feature and pay a small amount during a claim to enjoy lower premiums and higher discounts. Just remember to pay the deductible upfront before the insurer settles the rest”.

What Do You Mean By Pay As You Drive (PAYD)?

“Pay As You Drive” or PAYD is a recently launched tech-enabled add-on cover which provides a discount up to 25% on the payable premium of own damage cover. This means you are no longer liable to pay a fixed premium on your car insurance policy, rather you pay a premium on the basis of the usage of the car.

The coverage of PAYD cover is quite similar to regular insurance coverage. However, here to get the benefits, the policyholder needs to declare the exact usage of the car in a given policy year. And based on the kilometers covered, the insurance company will provide the discount on the own damage premium. The policyholder can easily customize the insurance cover by choosing optional add-on covers.

It can be opted by any individual who drives less than an average of 10,000 kilometers in a year. Under this cover, the policyholder is eligible to receive a discount of up to 25%, subjected to the annual kilometer slab opted for an odometer reading.

Benefits of Pay As You Drive (PAYD)

Mileage	Discount on OD Premium
0-2,500 kms	25%
2,501-5,000 kms	17.50%
5,001-7,500 kms	10%
7,501-10,000 kms	5%
>Above 10,000 kms	0%

Other benefits of PAYD for college students:

• Claim benefit up to 25%.
• No pre-condition or limit on kilometers.
• No extra changes even if the student drives extra kilometers.

The insurance industry also expects PAYD to be a game changer as it totally depends on usage-based costing which ensures full transparency and is not that heavy on the pocket of college students.

On the launch of PAYD in one of the leading insurance providers National India Assurance, Neerja Kapur, chairman and managing director, said, “PAYD policy fulfills a long-standing demand of customers for simple and flexible products that consider different usage patterns. This product is one of the few in the market to help the customer manage his outflows towards vehicle maintenance. We are confident that this product will herald a new age in vehicle insurance and promote better compliance thereby reducing the risks associated with uninsured and underinsured vehicles plying on the roads.”

Why do College Students Have a Higher Accident Risk?

Road accidents is a global issue which should be considered as a serious concern as statistically it has been researched that the majority of road traffic accidents are caused by the younger generation. Let’s see the main reason why college students have a higher risk of causing accidents:

• Lack of car driving experience.
• Overconfidence while driving.
• Poor estimation of risk.
• Peer pressure from co-passengers.
• Parental influence.
• Driving under the influence of drugs and alcohol.
• Involved in the cases of hit and run.

How College Students Can Buy a Car Insurance Policy?

• Visit the official website of the insurance company and click on ‘buy motor insurance”.
• Fill in your personal information such as age, location, profession and contact information.
• Click on what type of coverage you want to select such as third-party policy or comprehensive policy.
• If you select a comprehensive car insurance policy, then you can also select add-on covers along with the policy at an extra premium cost.
• Once you select, the premium quote will appear in front of you. At this stage, you can compare different policies and find out the best rates.
• Once you are ok with the premium cost, go ahead to buy the policy and make the payment via bank transfers or other online modes.
• After the payment, the soft copy of your car insurance policy will be mailed to you at your registered id. These days insurance companies also send the soft copy via WhatsApp.

What Factors Should College Students Consider While Buying A Car Insurance Policy?

• Conduct a proper research about various car insurance plans, coverage and different add-on riders which meet all your needs.
• Go through the online feedback and reviews which are easily available on the internet.
• Always compare premium quotes for various insurance plans and select the most appropriate one which is extensive in coverage and best suited to your pocket as well.
• Go for a comprehensive kind of coverage as it will help you more at the time of unexpected situations.
• Be judicious while purchasing add-on covers and choose only those that fulfill your insurance requirements. For instance, nil depreciation cover can be a perfect choice for a college student driver.
• Carefully read the fine prints of the policy which includes all the possible inclusions and exclusions.