Friday, 10 May 2024

How Digital Payments Have Revolutionised Premium Payments for Policyholders

Imagine you are at home and suddenly, you remember that you need to check your insurance policy details. In the past, this would require you to make calls, schedule appointments, or even visit your insurer’s branch. Thanks to the growth of digital payments, managing your policies, including premium payments, has become much easier. With just a few clicks, you can securely pay your insurance premiums from the comfort of your home and explore a wide range of additional services.

In this blog, we will walk you through the growth trajectory of the digital payments industry while highlighting its role in life insurance, particularly in premium collection.

How Have Digital Payments Grown Over the Past Years?

After demonetization, there has been a notable surge in digital payments in India. According to a report by the Ministry of Finance, digital payments in India reached 11,660 crores during FY 2023-24. Moreover, the global digital payment market reached an estimated USD 96.07 billion in 2023 and is projected to increase at a CAGR of 21.1% from 2024 to 2030.

Government initiatives like Digital India and Make in India, as well as increased internet and smartphone usage, drove the growth of digital payments. The Government of India aimed to boost digital transactions through different modes of online payment like mobile wallets, QR code-based payments, and UPI payments.

What Is the Role of Digital Payments in Life Insurance?

Digital payments have played a crucial role for several prominent sectors and companies in India, including the life insurance industry, where it has revolutionized premium collection processes and enhanced customer convenience.

Embracing digital payments in life insurance brings a plethora of benefits.

Let us now discuss the advantages of digital payments:

● Streamlines Premium Payments

Premium payments include crucial interactions between you and your insurer. With online payments, you do not need to travel to the branch or call an agent, saving you valuable time and effort. You can conveniently pay premiums from home using your computer or smartphone.

● Low Risk

Due to online payment methods, the risk of theft associated with carrying cash or cheques has significantly reduced. Digital transactions are encrypted and secure, minimizing the risk of theft or fraud during premium payments or policy-related transactions.

● Timely Crediting

Digital payments are processed much faster compared to traditional payment methods. This quick processing ensures that premium payments are promptly credited to the account while eliminating the chances of late payment penalties or policy cancellations.

● Faster policy issuance

Timely credit of premiums allow insurers to reduce policy issuance timelines and hence initiate insurance coverage sooner.

● Flexible Options

Policyholders have the flexibility to pay premiums through various digital options, including online banking, mobile wallets, credit cards, debit cards, etc. This flexibility allows you to choose the payment method that best suits your preferences, enhancing your overall experience.

How Can Insurance Policyholders Utilise Digital Payments?

Several Indian life insurance companies provide a one-stop digital platform to their policyholders, facilitating seamless premium payments. Such platforms offer flexibility and convenience to policyholders by letting them utilize digital payments via different modes, including credit/debit cards, online banking, and mobile wallets.

Reliance Nippon Life Insurance offers an advanced customer portal, enabling you to perform financial tasks beyond premium transactions. From updating profiles to editing banking details, switching between funds, accessing pre-approved offers, requesting policy loans, downloading receipts and policy documents, to initiating chat via WhatsApp bot, all such tasks are available at your fingertips.

The Bottom Line

By simplifying the digital payment process, Reliance Nippon Life Insurance aims to enhance the overall customer experience and provide greater convenience to policyholders. This seamless integration into your daily routine transforms how you access life insurance policies, making it a hassle-free experience.

Link: https://customer.reliancenipponlife.com/customer/

References:

https://pib.gov.in/PressReleasePage.aspx?PRID=1988370#:~:text=The%20Minister%20further%20stated%20that,2023.

https://economictimes.indiatimes.com/wealth/insure/5-reasons-to-buy-insurance-online-how-to-make-the-fast-easy-and-safe-purchase/articleshow/63111037.cms?from=mdr

Disclaimer: http://bit.ly/2GZeRHI

Visit Us: https://www.reliancenipponlife.com/

Mktg/RNLIC/blog_digital_payments/V1/May2024