Choosing the best insurance policy can be difficult because it can be tough to understand the ideal coverage for you at first glance. With so many insurance companies in India, it is important for buyers to know what makes them different from the rest.
So, once you understand why you need an insurance policy, you can decide which insurance company and what type of insurance plan to buy. But there are a lot of errors one can make while evaluating one’s options.
With your best interests in mind, here are a few mistakes you should avoid when making the right choice:
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Not checking the claim settlement ratio
This is one of the most important parameters that people may often neglect when buying an insurance policy. You can check the annual report of IRDAI to see the claim settlement ratios of all general insurance providers in India. Most insurers also list it on their websites. The claim settlement ratio is based on the number of settled claims over the number of claims received within a period. The higher this rate is over the years, the better choice that insurance provider is for you. If the insurer has an iAAA rating for the ability to pay claims, you should strongly consider buying from them. *
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Not comparing different quotes
Comparing different insurance plans and their features is the key to finding the right insurance plan with the right coverage. After doing an online comparison, you can start by identifying 3-4 insurance companies in India and click on an insurance plan and request a quote. Please provide detailed information in your application for accurate analysis. After submitting the form, you will receive a free quote from the insurance company of your choice. Compare different quotes that you receive on a multitude of factors. *
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Not following the correct approach
Ideally, comparing different plans and then choosing an insurance company is the right approach. After getting various general insurance quotes, compare them all and choose the one that best meets your needs and preferences in terms of term, budget, premium, and coverage. However, people often go about in the wrong order. This leads to picking a good policy from a bad provider or vice versa. *
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Not evaluating the insured amount
Get a fair estimate of your general insurance policy and then search online for different policies based on the insured amount. Check out your insurance provider’s plans,types of general insurance they offer, benefits, and limitations. This will give you an idea of the coverage amount they offer across their policies. You can also conduct the same research for other insurance companies. *
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Not checking the features of a policy
This is one of the most important determining factors in choosing the right general insurance. If you are looking to buy health insurance, car insurance, or travel insurance, you need to decide whether to buy a basic plan or a comprehensive plan. You can compare the features of the policies, and what is included, and compare that with different plans to buy the policy that best meets your needs and requirements. *
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Ignoring sub-limits
Not everyone is aware of the sub-limits that apply to some insurance benefits. Especially in the case of health insurance, you may have to pay medical expenses that go above the upper limit of the insurance premium. Ignorance at the time of buying the insurance policy can cause trouble for you at the time of insurance claim. To avoid such situations, you should be aware of these sub-limits before paying. *
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