Insurance is the most productive investment that acts as a safety net in difficult situations. The insurance is a legal contract that allows the policyholder to transfer the risk of financial loss to the insurance company. The company will help the policyholder in difficulty, in return for which policyholders have to pay a small amount called premium on monthly, quarterly or annually basis as mutually decided between the two. However, paying a premium with traditional methods consumes a lot of time & energy. The major drawback with the traditional way was late payment charges upon missing the premium settlement and sometimes it may also lead to policy cancellation. However, this problem is fixed via the UPI payment app. With a single tap, the policyholder can send the premium to the insurer without any effort. As per a study, the usage of a UPI payment app for insurer premium payment has increased widely.
UPI payment apps have achieved a significant milestone by crossing $1 trillion in transactional value. This calculation indicates the willingness of users to adapt to the UPI trend. The main motive behind increased usage is its advantages. Read further to know more on insurance Premium Payment Online via UPI apps.
What are the advantages of the UPI payment app?
These factors encouraged policyholders to make insurance Premium Payment Online via the UPI payment app.
Speedy transactions – The UPI payment option involves fewer formalities compared to other payment options. The user does not need to enter account details for transactions since the UPI app is already linked to the user’s bank account. The UPI payment app only asks for UPI Pin for the transaction. Policyholders may transfer an insurance premium payment online at any time from anywhere. This convenient process directs speedy transactions.
Easy refund system – This is the risk that threatens most of the users. However, NPCI has implemented a strong system to avoid transaction failures. Even if the amount is debited, it will automatically revert to the user’s account within an hour if the amount is not credited to the recipient’s account. In the meantime, the user may inform their bank & file a complaint if needed.
Freedom – The convenience offered by the UPI payment app for insurance payers is the main reason why many insurance providers push an insurance premium payment online among customers. The policyholder need not remember the whole policy details; just the policy number is enough. This allows the user to enjoy the freedom of hassle-free transactions.
Authentication – It doesn’t matter which UPI app the customer is using; the UPI pin remains the same for every UPI payment app. This means there is no need to set a separate pin for every UPI app.
Rewards- Another benefit of online payment is exciting rewards. The users receive cashback and discounts upon transaction. Sometimes vouchers are also offered. It may vary depending upon the apps. However, small savings can be made via a UPI payment app.
Autopay- The major drawback of traditional payment methods is fixed with the help of this feature in UPI apps. This feature allows policyholders to reap the benefit of insurance by ensuring timely premium settlement. This feature provides the flexibility of setting the preferred frequency of premium payment. In addition, the UPI payment app sends a reminder of premium payment before the due date.
Tips for safe UPI transactions
Here are a few tips to keep transactions through a UPI payment app safer.
- Never share a UPI pin or OTP with anyone. Inform the bank immediately if the user receives a call or SMS asking for a pin or password.
- Change the UPI pin in between to ensure more security.
- Turn on two-factor authentication in UPI apps.
- Another risk is smartphone theft. To ensure the safety of the UPI app, even if the smartphone is stolen, the user may set a high secured lock like a face ID or fingerprint.
- Avoid installing unknown apps. Try to check verified badge, number of downloads & reviews while downloading apps.
What is the other online platform for insurance premium payment?
Another flexible option for transferring an insurance premium payment online is MobiKwik. It is one of the most recommended mobile wallets for bill payments. MobiKwik offers the convenience of paying insurance Premium Payment Online via website and application. The user interface is easily accessible and allows the customer to pay for the different insurance providers. Customers need not pay any extra charges and avail of the benefits of cashback and rewards similar to a UPI payment app. It also allows the customer to choose payment options like a credit card, debit card, or UPI Id & the best part is customers need not disclose any private information to the interface.
From small vendors to big shopping malls, everyone has opted for the culture of using a UPI payment app due to its flexibility & convenience. Everyone has a reason to adapt to this change. It is always in the policyholder’s hands to decide which payment option suits their interest.