HDFC to offer insurance plans online

Company is going to offer child plans, retirement plans and other plans online by the end of this financial year

HDFC Standard Life Insurance Company will start offering most of its insurance plans online by the end of this financial year, a senior company official said here today.

"We are going to offer child plans, retirement plans and other plans online by the end of this financial year. As over 20 million people search for life insurance policies through Internet, we would like to be there for them," Sanjay Tripathy, Senior Executive Vice President (Marketing, Product, Digital and e-Commerce), said.

Earlier, he also launched the HDFC's new unit linked insurance policy (ULIP) 'Click2Invest' which is available for purchase only online.

Noting that online sale of life insurance policies is made mainly in the case of term insurance plans, he said, "Of the Rs 300 crore sales of life insurance policies online, around 33% is ours."

The company's average premium per policy on its term insurance plans is around Rs 12,000, he said.

Over 20 million people did e-commerce last financial year in India and the number was expected to touch 35 million in the current financial year and 80 million by 2015-16, he said.

The Indian e-commerce market was estimated at around USD 13 billion in 2013 and is likely to be at USD 70 billion by 2020; and nearly 50% of the new mobile phones will be smartphones.

"So, by 2020 three-fourth of the life insurance policies sold will be influenced by digital channels," Tripathy said.

HDFC's new ULIP was first-of-its-kind plan that invests 100% of the premium and only charges fund management fee of 1.35% and the risk premium for mortality cover, he added.