Individuals are spoilt for choice while opting for an Insurance Policy. We have many Insurers offering many Insurance plans with varied benefits and features. Many Insurers are offering policies at a very low premium to lure potential insurance buyers. Very often buyers get attracted to cheaper insurance plans ignoring various other factors that one should keep in mind while opting for an Insurance plan.
Individuals should always keep an eye on the past record of the Insurer before opting for an Insurance Plan. One of the most important factors that one should keep in mind while buying an Insurance Plan is the credibility of the Insurer. There are various other factors that one should keep in mind while opting for an Insurance Plan.
Factors that Individuals should keep in mind:
Claim Settlement Ratio: It is one of the factors which potential Policy buyers should be aware of before purchasing a policy. As it tells us how efficient the Insurer is when it comes to settlement of claims.
Claims Pending with the Insurer: This may be described the number of claims yet to be settled by the Insurer as compared to total number of claims received. This not only helps to find out the volume of business generated by the Insurer, but also the efficiency level at which they settle the claims.
Average Claim Settlement Time: This figure will help you understand the approximate turnaround time an Insurer takes while settling a claim. The faster the claim is settled the better it is, but the delay at times can also be attributed to the incorrect facts shared by the Insured while purchasing a policy.
Number of Claims Repudiated: This is another crucial data which one should carefully check before opting for a plan. It determines the number of claims which have been rejected on the basis of some grounds such as suppression/misrepresentation of facts or any other reason. It may happen that Insured had not shared certain facts or the Insurer did not conduct a proper verification before or within the stipulated period of issuing the policy. However, such rejections do not speak too well of the Insurers so one has to ensure that one is getting insured with a trusted Insurer.
Read the Offer/Policy Documents in Details: It is advisable to read the Policy documents carefully to understand the stipulation, riders and regulation which binds the insured and also states the extent of coverage provided by the Insurer under the Policy.
The points mentioned above are some of the important aspects which should be considered before opting for a policy from any of the Insurers. Individuals can also probe beyond the points stated above to know more about Insurer so as to assure themselves that they get the best deal.