What
Insurance Agents Do not Tell You..!
by Mr. NAVEEN KUKREJA, Policybazaar.com
Do
your homework before signing up for an Insurance policy
Insurance agents have been an
irreplaceable part of the insurance purchase process since time immemorial. And
in most cases, instead of reading the document and fully understanding what we
are getting into, we find it easier to just sign up based on what the agent
says.
The
result is that when it is time to raise a claim, you realise you don’t get what
you were promised.
Premiums
are not everything..!
On
an average, a regular conversation between a customer and an insurance agent is
all about premiums. Most people look at insurance as another investment option,
so premiums and returns become central to their understanding of the policy.
But there are many things that you should not ignore while buying a policy,
especially exclusions.
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| Mr. NAVEEN KUKREJA, Group CMO, Policybazaar.com. |
To
buy an insurance plan that can cover you during a financial emergency, take
note about exclusions. This will help you understand the policy better and get
you more value for money.
Devil is in details..!
Only
details can save you from buying an ill-fitting policy. If you are buying
health insurance, for example, you may be told that it covers your hospital
bills.
Beware
of such statements, otherwise you will find yourself caught amidst jargon and
objections at claim time. Ask for limits, hospitals covered, diseases covered,
etc. Read carefully about exclusions and see if it suits your requirements.
Some
policies cover a particular treatment only after a few years of purchasing the
policy. Make sure you understand such clauses.
Fancy
clauses..!
An
insurance agent might go into a sales pitch that includes at least one fancy
item and weave a rosy picture. The truth is you might not even require it, but
you may get caught up in the pitch. Moreover, these come with a higher premium
cost.
So,
assess carefully what you actually need. For example, in a car insurance plan,
you may be promised 24x7 assistance, towing service, etc. You might end up
paying a higher premium for a service that you’ll hardly use.
Commission,
processing costs..!
No
insurance agent will ever tell you that his commission is the primary reason
behind him pushing one policy over another. Remember that an insurance agent is
just a salesperson.
Besides,
agents do not reveal the percentage of your premium that the
insurance companies take as a processing surcharge.
The
lesser this amount, the better it is for your investment. So, take care not to
end up paying higher processing fees due to ignorance.
Claim
settlement ratio...!
It
is a nightmare to run behind an insurance company to get your claim settled.
The
worst scenario is your claim getting stuck in unwarranted objections. Your
agent cannot rescue you as he has no role in claim settlement.
It
will be done according to the policy clauses and the insurance company’s
processes. It would be wise to ask about the claim settlement ratio of the
company and compare it with other insurance companies.
This
will give you a fair idea of how efficient the company is in claim settlement.
The
writer Mr. NAVEEN KUKREJA is Group CMO, Policybazaar.com
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