By Nitin Kumar
Thanks to technology, traditional, time-consuming practices are making way for faster, easier processes. An example is the insurance sector, particularly motor insurance, which has embraced technology in two key areas: simplifying claims processing and KYC (know your customer) process. Let’s delve into these two.
How does online motor insurance claims process work?
Just a decade ago, filing a motor insurance claim was cumbersome, requiring physical visits to insurance offices and waiting for days, or even weeks, for settlements. But digital technologies have turned this arduous process into a streamlined, hassle-free affair.
Instant claims intimation: Policyholders can instantly intimate their insurance company about motor insurance claims through mobile apps or websites. The process usually involves filling out an online form, providing details of the incident and uploading supporting documents, such as photographs of the damaged vehicle. It expedites the claims settlement process.
Real-time evaluation and quick disbursement: With immediate access to claims information, an insurance company can promptly assess the situation. AI-powered tools can analyse images and data to evaluate the extent of damage and calculate the claim amount accurately. The process is done remotely, eliminating the hassle of physical inspections. Once the claim is approved, the settlement amount is disbursed to the policyholder’s registered bank account through electronic fund transfer.
Option of cashless settlement: Many insurers have established networks of authorised garages, enabling cashless claim settlements. Policyholders can have repairs done at these garages without upfront payment, as the insurer directly settles expenses.
How to get your motor insurance KYC done hassle-free?
KYC is important for verifying policyholders’ identities and preventing fraud. As per the latest KYC compliance norms for general insurance that came into effect from January 1, 2023, all policyholders need to undergo KYC verification while purchasing a new policy or renewing an existing one. Existing policyholders were mandated to be KYC-compliant within a year from when this update was issued. This is in contrast to earlier times when KYC documents were required only while filing a claim.
Here are three ways to complete KYC verification:
C-KYC
Also called central KYC, C-KYC is a simple process. Usually, policyholders who have previously invested in the market or hold a Demat account or have taken a loan have a C-KYC number that can be given to the insurer. Alternatively, policyholders can provide their PAN and date of birth, and based on it the insurance company can verify KYC details.
e-KYC
A prerequisite for several formalities, e-KYC is needed even for something as basic as getting a prepaid or post-paid mobile number. One needs to enter their Aadhaar and authenticate the same though OTP. Once it is verified, insurance companies establish the identity of the customer.
Proof of identity and address
This process can be followed in the absence of any of the above details, which means that policyholders need to have a proof of identity as well as address. They can upload their PAN as proof of identity and upload Aadhaar, passport or driving licence as proof of identity. Upon successful verification of documents, customers can buy the insurance cover.
Digital revolution has reshaped the motor insurance journey for Indian consumers. The online motor insurance claims process — with instant claim intimation, virtual inspections, paperless documentation and cashless settlements — has significantly reduced time and effort for claim settlements. Similarly, the hassle-free motor insurance KYC process, leveraging PAN-based or Aadhaar-based verification, streamlines identification procedures for policyholders. As the digital ecosystem continues to evolve, we can expect more innovations that will enhance the convenience and efficiency of motor insurance in India’s insurance landscape.
The author is head, Motor Insurance, Policybazaar.com
