While the government is promoting cashless transactions through digital payment platforms, the general insurance sector is looking at ways to insure such transactions. Preliminary talks on the coverage of digital transactions and mobile wallets have been going on for some time now.
Digital transactions rely heavily on sound infrastructure for a smooth experience, which is not always readily available. Sometimes the transactions do not go through as expected resulting in a financial loss to the customer. General insurance companies are looking to capitalise on this opportunity and provide coverage for such transactions.
According to R Chandrasekaran, Secretary General, General Insurance Council, there will be an increasing number of insurance products offering protection against the financial losses arising from digital transactions. Mobile wallet companies for instance have already begun tie-ups with general insurance companies to offer coverage on a fixed wallet amount.
The general insurance industry is moving from traditional insurance to personal insurance to a next level of insuring financial losses. Post demonetisation, the government has been promoting cashless transactions. Even government schemes like Pradhan Mantri Fasal Bima Yojna (PMFBY) and rail travel insurance are driving the growth in premiums of general insurance industry.
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