Medical Insurance Payments with eMandate: Everything You Need to Know

Insurance Payments with eMandate

What are Insurance Policies?

A legal contract between the insurer, generally the insurance company, and a business or an individual entity is commonly termed an insurance policy.

In most cases, the insurance policy is an integrated contract, which means that it contains all documents related to the arrangement between the insured and the insurer. The insurance policy may, in some circumstances, become a non-integrated contract if there are supplemental writings, such as letters issued after the final agreement.

In the past, insurance policies were drafted according to each and every sort of risk (where hazards were specified quite specifically), with a different premium being computed and levied for each. Only the specific individual risks that were “scheduled” or expressly covered by the policy were taken into account; as a result, those policies are now referred to as “individual” or “schedule” plans.

Policyholders, after purchasing an insurance plan either as an investment, tax break or for medical purposes, will need to make regular payments to keep the policy active. The best way to do this is for insurers to enable medical insurance payments with eMandates

Recurring Payments For Medical Insurance Policies

According to surveys, a majority of Indian respondents use e-payment methods for online purchases. Out of the total respondents in various South-Asian countries, over 75 percent of respondents used e-payment services to pay bills for recurring services such as electricity, telephone, internet, and more.

Recurring payments also play a huge role in finance and especially in the insurance sector where policyholders need to make periodic health insurance payment and recurring deposits for schemes such as term insurance plans and more.

Recurring Deposits

One of the greatest and most secure investment plans with a guaranteed return on investment is the recurring deposit scheme. Recurring deposit accounts can be opened by both paid and independent workers. In accordance with this plan, the owner of a recurring deposit account must make monthly investments of a fixed sum for a predetermined length of time.

The recurring deposit’s term can be anywhere between six months and ten years. An investor will receive both the principal amount and the interest amount when the scheme matures.

Recurring Premium Payments 

Recurring premiums, more commonly known as regular premiums, are among the most familiar types of insurance premium payments with the health insurance premium payments being the most prominent one. The intervals at which these premiums are paid are typically decided by the insurer and policyholder.

Once an insurance policy is chosen, recurring premium payments will need to be made to keep the policy active. Therefore, periodic payments are a common fixture for insurance policyholders and insurance companies. It actually helps in the timely payment of medical insurance payments with eMandate.

eMandate For Medical Insurance Payments – How it Works  

eMandate is a digital payment solution created by the RBI and the National Payments Corporation of India to assist businesses in streamlining their payments. This process, which enables firms to collect payments without involving physical labor, is based on the eNACH eMandate infrastructure. Physical mandate, Aadhar-based electronic signature mandate, and API mandate can be considered its three main components.

An eMandate, to simplify recurring payments, works in the following way:

  1. Customers receive an email or SMS invite to preview details such as bank name and mode of authentication 
  2. After accepting these details, the customer is redirected to the NPCI ONMAGS website to submit these details
  3. Next, the customer is redirected again to the website of the bank where they hold their account. Here the customer enters their NetBanking or debit card details
  4. The bank then accepts or rejects the mandate, following which the confirmation details are sent to the customer and the insurer. 
  5. In this way, an eMandate helps in saving both time and cost. The whole process is carried out without any hassle and in real-time.

Advantages of Automated Recurring Payments for Insurance Premiums

Recurring payments via eMandate are a phenomenon that has been in action for a long time now, and automating them has its own benefits. The advantages are as follows:

  • Hassle-Free Premium Payments:

The customer has to set up their billing information once, after which they can use the services without being locked into a contract or actively needing to make another payment. Businesses benefit from a consistent cash flow, more accurate revenue forecasts, and significant personnel and administrative resource savings. Additionally, policyholders can rest assured that regular premium payments are being made automatically, keeping their policies active. 

For medical insurance payments with eMandate, it is indeed useful as it eases the execution of insurance payments during the discharge of the patients and during billing.

  • Enhanced Safety and Security:

The transaction happening between the insurer and the policy holders is safe and secured as payment gateways use tokenization and adhere to PCI compliance. PCI or Payment Card Industry is a data security requirement for businesses that manage branded credit cards from the main card systems.

Medical or life insurance payment requires safe transactions which can be guaranteed with the eMandate system of recurring payments. 

  • Easy Implementation:

Earlier, to initiate a mandate manually, one would need to personally fill out a form, sign it, and deliver it to the bank or corporate organization. One would then need to wait for two to three weeks to learn whether the paperwork has been accepted.

With eMandate, one may electronically complete this form with simply an internet-connected device and receive a decision in as little as three working days. This helps in life insurance payments along with medical insurance payments with eMandate and it can be executed when required to pay health insurance online.

  • Cost and Time Efficient:

An individual no longer needs to travel to numerous locations to make periodic payments. Companies don’t require a resource to handle these payments as well. It allows insurance payments like Life Insurance Corporation of India premium payments to happen easily.

  • Customer Convenience:

Customers just need to enter their information once, removing decision-making obstacles and promoting ongoing purchasing. 

Life insurance payment or medical insurance payments are an issue that should be devoid of any sort of obstacles. eMandate and policy payment via eNACH Mandate ensures that policyholders can make timely payments to keep their policies active. 

Undoubtedly, the feature of the medical insurance payment with eMandate facility has made automating recurring payments much simpler. It now takes no longer than two working days to complete medical insurance payments with eMandate, which would have taken around three weeks to complete.

SignDesk’s eMandate Solution for Insurance Payments

An eNACH eMandate solution from SignDesk, Link.It is NPCI-compliant and makes it simple to automate periodic payments. Our system enables the management of periodic payments by allowing the customer’s bank to routinely debit the account. Customers may instantly confirm eNACH mandate using Aadhaar eSign, NetBanking, debit/credit card details, and set up recurring auto-debit transactions for your company using SignDesk’s e-Mandate solution.

This helps in the timely payment of insurance premiums. Be it life insurance or medical insurance payments with eMandate, the whole process is easier and seamless for both insurers and policyholders. The whole process of medical insurance payments with eMandate is made easier with the execution and usage of Link.It.

Our eMandate and Aadhaar eSign products have helped a number of large banks and FIs cut costs by 60 to 85% and turnaround time by more than 50%.

With the use of eSign processes and our NPCI-compliant E-Mandate solution, customers may quickly and easily pay health insurance premium online using Aadhaar-based verification.

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