Press Information Bureau

Government of India

Ministry of Finance

29-November-2011 17:48 IST

The Insurance Regulatory and Development Authority (IRDA) has informed that at present some of the insurance companies resort to online sale of insurance products through their websites/portals in addition to sale through the conventional distribution channels. However there is no proposal from any insurer for sale of their entire policies on online mode.

Insurance is sold through multiple modes such as face-to-face, telecalling and online. So far as online is concerned, it affords a non-intrusive and easy purchase of insurance at a time convenient to the buyer from wherever he is located without the involvement of an intermediary.

Settlement of claims depends on the terms of policy contract rather than mode of sale. Therefore, claims under policies sold online would be settled in same way as policies sold on other modes so long as the terms of policy contract are the same.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Rajya Sabha today.

DSM/ Hb

Claims settlement depends on policy terms, so policies sold online are settled on the same terms as other modes. Online sale of insurance is available in addition to conventional distribution channels but no insurer has proposed fully migrating to online-only sales. Online purchases are non-intrusive and permit remote acquisition without an intermediary. Claims settlement is governed by the terms of the policy contract rather than the mode of sale, so policies sold online are to be settled in the same way as policies sold by other modes where the contract terms are identical.