[Insurance Tips] Real Value of Insurance Comes Through Right Buying | New & Existing Insurers To Know These Tips

Insurance is a very important save and secured investment when it comes to our savings and securing the cost of our life when we are not there for our families so that they are not left for begging on roads. Though the money can not fulfill my absence, but it is going to fulfill some of their daily needs which I had to, in my absence. That’s a huge reason why all should insure, atleast the one who is the bread and butter earner for the family. It may be the father, mother or anyone else.

However, gone are those days, when only Life Insurance was considered and LIC [Life Insurance Corporation of India]  was the only leading insurance provider in India. These days, there are 14 Life Insurance Companies and 23 General Insurance Companies in India running their business. To provide a fair business to the companies and fair benefits to the customers the governing body Insurance Regulatory & Development Authority (IRDA) who controls all these Insurance Companies provide guidelines from time to time for the benefit of all. You as a customer need to know those because with the knowledge you can be wise and simultaneously you can help someone else.

14 Life Insurance Companies Operating in India

  1. Aviva India
  2. Bajaj Allianz Life Insurance
  3. Birla Sun Life Insurance Company Limited
  4. Exide Life Insurance
  5. HDFC Standard Life Insurance
  6. ICICI Prudential Life Insurance
  7. IDBI Federal Life Insurance
  8. IndiaFirst Life Insurance Company
  9. Life Insurance Corporation of India
  10. Max Life Insurance
  11. Peerless Group
  12. PNB MetLife India Insurance Company
  13. SBI Life Insurance Company
  14. Edelweiss Tokio Life Insurance

23 General Insurance Companies Operating in India

  1. Agriculture Insurance Company of India
  2. Apollo Munich Health Insurance
  3. Cholamandalam MS General Insurance
  4. Bajaj Allianz General Insurance
  5. Bharti AXA General Insurance
  6. Cigna TTK
  7. Export Credit Guarantee Corporation of India
  8. GIC Re
  9. HDFC ERGO General Insurance Company
  10. ICICI Lombard
  11. IFFCO Tokio
  12. L&T General Insurance
  13. Liberty Videocon General Insurance
  14. National Insurance Company
  15. New India Assurance
  16. The Oriental Insurance Company
  17. Reliance General Insurance
  18. Religare
  19. Royal Sundaram General Insurance
  20. Star Health and Allied Insurance
  21. Tata AIG General
  22. United India Insurance Company
  23. Universal Sompo General Insurance Company

There are around 8 most values tips which can benefit you when you are planning to buy any type of insurance may be for your life, your vehicle, health insurance or any other type. Just keep these 8 simple tips in mind you rock then.

Make sure you purchase insurance policies from Registered Insurance Companies directly or through

  1. Registered corporate agents/appointed insurance Agents by Insurer by verifying their identity cards or authorized letters etc.
  2. Licensed Insurance Brokers.
  3. Licensed web aggregators.
  4. Registered Common Service Centers (CSCs)
  5. Registered Insurance Marketing Firms (IMF)

Verify genuineness pf the person and the entity before making any payment

  1. Ask for the identity proof of the person/entity soliciting insurance.
  2. Ask for the details of address and telephone number of the person and the entity concerned, especially in case of telesales.
  3. Check the IRDAI website to verify the details of insurance companies, brokers, corporate agents and web-aggregators/IMF.
  4. Check the authenticity with insurance companies about the agents.
  5. If the premium is paid through cheque, please ensure that it is in the name of the registered insurance company; and obtain receipt of payment.
  6. Do not make payment in the name of any individual; or if the payment is by cash, make sure it is not without ascertaining the credentials.

Choose the insurance product suitable to you based on the following:

  1. Life stage, financial position and financial requirements.
  2. Purpose of the policy to be purchased:-
    1. to insure against risk of life or property
    2. as long-term savings
    3. to take care of hospitalization needs in future
    4. to meet statutory requirements
  3. Benefits offered in therms of adequacy of sum assured/sum insured.
  4. Tax incentive, if available.

Ensure the following while purchasing any insurance policy.

  1. Read the prospectus and proposal form carefully.
  2. Fill in the details completely before signing the proposal form.
  3. Retain a copy of the proposal form for ready reference.
  4. The insurer has a duty to furnish free of charge a copy of the proposal form within 30 days of the acceptance of the proposal. Please collect the same along with the insurance policy.
  5. Follow p with insurer or agent/broker for prompt receipt of policy document.

Life insurance policy mainly provides risk coverage for life. But it can also serve as a tool for long term investment and involves long term commitment. Take care of the following after receiving the Life Insurance Policy:

  1. Read the policy document carefully.
  2. Check the mode of premium payment, term of the policy, maturity benefits offered, loc-in period, surrender value etc.
  3. Ensure that the terms and conditions as per policy document are the same as indicated in the prospectus at the time of sale process.
  4. If you disagree with the terms and conditions, return the policy to the insurer within 15 days (30 days in case of electronic policies) from the date of receipt of policy giving reasons for objections. You are entitled for refund of the premium paid after deducting proportionate risk premium, the expenses incurred by insurer for medical examination, stamp charges.
  5. Pay premium regularly and promptly; and do not allow the policy to lapse.
  6. Continue the policy without a break to ensure maximum benefit of the insurance policy as full insurance cover and other benefits will be available only on timely payment of premium.
  7. Inform the family members about the purchase of insurance policy and its benefits, especially to the nominee.

Never fall prey to fictitious offers made by spurious callers promising high returns of unreasonable gains involving sale or redemption of insurance policies or other financial products.

Never fall prey to calls made in the name of IRDAI offering bonus or profits on investment. IRDAI neither declares bonus nor involves in sale of any kind of insurance or financial products or in investment of premium of insurance companies whatsoever.

Last but not the least, if any unlicensed intermediaries or unregistered insurers solicit insurance, file FIR with the police and intimate IRDAI. Any payment made to such unlicensed intermediaries or unregistered insurers is at your own risk.

Hope I have given you enough information to stay you alert next time you or any of your family members or friends check these points you purchase insurance. If you liked this review, please do share it in social media and leave your valuable comments.