Critical Factors You Need to Know Before Opting For An Insurance Plan

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:
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.
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.
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


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