Published On: Fri, Jul 20th, 2018

How to choose the Right Insurance Company

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The Bank, Financial Servicing and Insurance (BFSI) Sector in India is growing at a tangible rate today, and so is the number of general insurance companies. Having mentioned that, coming across insurance companies that promise you the best insurance plans through wide-ranging coverage and cheap premiums, is quite commonplace too. But how do you decide which is the best for you?

For instance, the cost of healthcare services is increasing, and the prolonged durations of critical treatments make it even more expensive over a sustained period of time. People, therefore, are more inclined towards health insurance that keeps them financially well-covered. Same goes for car insurance. The accidental repair costs of cars are significant, so not having the right car insurance is a risk that should be avoided.

Now, if you were to define what the ‘right insurance cover for you’ would mean, you are most likely to word it as a plan that can take care of most of your expenses without burning a hole in your pocket. Finding out the best insurance provider based on your needs and circumstances is difficult, but not impossible. And if you know the right approach, then that’s even better.

Points to consider when selecting a General Insurance Company

Whether it is a health insurance or motor car insurance you wish to buy, when searching for an insurance provider, you need to focus on certain key points that ascertain that the company in question is the one you want to be dealing with. Included in your deliberation process should be –

Coverage offered by the company

Coverage offered under an insurance plan should be of prime importance to anyone looking forward to purchase insurance. You also must understand that not all insurance providers offer the same benefits. For instance, pre-defined diseases in case of health insurances and hijack distress allowances in case of travel insurance are some features that not every insurance plan includes. That said, with IFFCO Tokio, both of these aspects are covered.

So go through the coverage mentioned under an insurance policy in detail, and see if your chief requirements are covered or not.

Premium charged

Premium is the amount of money you pay to an insurance company in return for the coverage you get from them, under an insurance plan. Now, many people decide on an insurance plan based on the premium alone. Generally, a plan with high premium amount also has high sum assured, which in turn widens the window of the claims you can make.

So while a cheap insurance plan might seem convenient, you need to weigh it better on the coverage you receive vis-à-vis the premium you pay.

The network

General insurance companies (IFFCO Tokio included) maintain a network of service providers such as healthcare institutions and garages. These network garages or hospitals team up with the insurer to offer cashless services to their policyholders. Now, if you were to get injured badly and needed hospitalization and medical assistance, you could get admitted in one of the network hospitals with your insurance company and let the latter handle your expenses.

IFFCO Tokio, for instance has a network of 4200 hospitals and a garage network of over 2300+ garages. As a smart safeguard, the wider is the network of hospitals or garages with an insurance company, the more convenient it is for you.

Claim settlement ratio

Another parameter that you can bring into use for judging whether or not the insurance company in question is good is claim settlement ratio. Claim settlement ratio refers to the number of insurance claims that a company approves and settles each year out of the total claims received. This ratio is generally expressed in the form of percentage. Annual reports regarding the same are consolidated and published each year by the IRDA.

IFFCO Tokio, with a 92% claim settlement ratio, is known for its fair and transparent settlement of claims. So, in a way, the claim settlement ratio gives you a fair idea about the efficiency of the insurance company.

Customer reviews

Another good way to finding out whether or not an insurance company does as it says is by asking or listening to its customers. In relation to this, you can find a lot of customer reviews online on the company’s website, social media platforms and also third party websites.

You can also get in touch with your friends who already own insurance from an insurance company which is under consideration at your end, and learn more about the company through their experiences.

Last but certainly not the least, comparing insurance policies online is also a popular trend with regards to finding out the best plan for oneself. Such comparisons can be carried out for free online, on third party aggregator websites. You can narrow down your choices based on budget, requirements and benefits. So, be it a home insurance, health insurance or car insurance that you are looking for, policy comparisons will give you a fair sense of which insurance company you should bank upon.

From the off, pay attention to the details which choosing your insurance company!


About the Author

- I am an internet marketing expert with an experience of 8 years.My hobbies are SEO,Content services and reading ebooks.I am founder of SRJ News andTech Preview.

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