Government's Online Insurance Discounts not on Renewals

Buyers of motor and health insurance from state-owned companies will get 10% discount only if they switch companies. This is because the online discounts announced by the finance minister are available only for new policies, and not renewals. The online discount offered by the LIC is even more limited as it applies only to online term policies. All the four public sector companies -National Insurance, New India Assurance, Oriental Insurance and United India Insurance -have filed for new discounted online policies. These discounts will be available only on those policies sold through the customer portal.

Last week, the finance minister announced a host of measures to promote online payments. Oil companies and railways will offer a 0.75% and 0.5% discount, respectively , on payments made via debit card. Public sector insurers will provide incentive, by way of discount or credit, up to 10% of the premium in general insurance policies and 8% in new life policies of LIC sold through the customer portals.