Bite Size Insurance: For a buyer who is taking an insurance policy for the first time, Bite-Size Insurance assures him not to suffer much loss.
Bite Size Insurance: Have you ever looked at the insurance option while booking train tickets on IRCTC website or while booking flight tickets online?
These are the closest examples of a bite-size insurance or small-ticket insurance product.
What is bite-size insurance?
Bite-size or small-ticket insurance is a non-comprehensive insurance plan that covers certain needs such as vector-borne, travel-essential, home appliances and electronics (mobile, home security, bicycle theft) or Focuses on lifestyle (marathon fitness).
However, it is different from bite-size micro insurance. Micro insurance has been in the market for a long time and taps the bottom line of the consumer market.
The main attraction of these insurance products is very low premium charges and lesser documents required as compared to the policies offered in the market in general.
For a buyer who is taking an insurance policy for the first time, bite-size insurance assures him that he will not suffer much loss.
You start here with the lowest premium and gradually start understanding the need for health or life insurance with adequate coverage.
Companies Offering Small-Ticket Insurance
Several companies such as Toffee Insurance, Digit Insurance and ICICI Lombard provide insurance online digitally.
There is no need for any kind of medical test or proposal forms to buy these products. The fast-paced world we live in does not give us the time for lengthy paperwork.
Thus, bite-size insurance proves to be a boon in the midst of this hustle and bustle.
Various small-ticket insurance products from Toffee Insurance
Toffee Insurance has tie-up with general insurance companies like Tata-AIG and Chola MS.
It provides services for a wide range of things including cycle insurance, where it covers both the rider and the bicycle for theft, loss and personal accident.
Bajaj Allianz and HDFC ERGO offer cyber liability cover for their smart device users.
Whereas another company also offers mobile insurance covering screen damage and theft on the basis of Go Digit General Insurance plan.
pay attention
Policyholders do not suffer any major loss on account of these products, as they can choose not to renew the cover without paying any loss at a premium.
However, experts feel that such products may only provide a short-term solution but should not be seen as a substitute for long term plans.
Such sachet products may be good for you to understand the world of insurance but buying the right term insurance should be at the top of your priority.
Insurance is an essential part of your financial planning and should be treated as such.
You should also note that lower premiums also mean less coverage. Also, these products are mostly sold on group platforms, so the path between the insurer and the intermediary may diverge at any time and such matters can land you in trouble.
