As per the information furnished by Insurance Regulatory and Development Authority of India (IRDAI), the price of insurance products sold online through the Insurance Company’s website, without any intervention of agent or intermediary, is lower in comparison to the offline version because no commission is payable in such cases. The cost of online products sold by the insurers gets reduced by the amount of savings due to non-payment of commission on such products. However, any system establishment expenses, expenses related to call centre to assist online customers etc., get added to the price of such products. Hence, the prices may vary when the products are sold through online and offline.

The online payment system of insurance companies are functioning properly and regularly and no instances have come to the notice of the Authority

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.

Online insurance pricing reflects commission savings but may vary due to added digital channel operational costs. Online sale of insurance policies by public sector insurers typically conveys lower prices because no intermediary commission is payable, but added online costs such as system establishment and call-centre support can increase prices so that online and offline premiums may differ; regulators report that insurers' online payment systems are functioning properly with no incidents reported.