On-line insurance company InsuranceWide.com has sealed a huge deal with British Telecom to provide internet access for the communication giant's five million-plus mobile phone users.

The news is a further boost for the on-line company, and follows its joint venture with the UK's biggest free internet service provider, Freeserve which has 1.6 million users.

InsuranceWide and BT will exploit Wireless Application Protocol (WAP) technology and income will be generated according to the flow of business. This will allow mobile phone users to access InsuranceWide's system and complete the purchase of motor, home, travel and motor assistance policies.

To use the system, customers will first have to register their personal details, either over the telephone, or the internet. This information is then stored by InsuranceWide.com and accessed by the policyholder as and when required.

Chief operating officer James Harrison said: "By making our systems available through the mobile phone network, customers will have the opportunity to receive quotes 24 hours a day and even make a claim at the press of a button."

In the early stages, the two companies will offer details of InsuranceWide's current range of on-line products and services, but Harrison said plans are at an advanced stage to make other lines available.

The next batch of products likely to be available over the mobile phone system later this year will include directors' and officers', professional indemnity, public liability, computer breakdown, and computer fraud.

Harrison said: "This development is another step towards achieving InsuranceWide.Com's goal to be the one-stop internet shop for all insurance needs."

He added that his company is also "in negotiations" to sell insurance on digital television although no details are available as yet.