Selecting Insurance Plan - Make the Right Choice
Written on Saturday, July 4, 2015
By Team - Bajaj Capital
It is often observed that investors get influenced by the higher returns and tax benefits offered by the companies. Is that the sole criteria you have always based your decisions upon? If yes, then probably you need to think again. We have always heard and believed the proverb- "A friend in need, is a friend indeed." How about applying the same while going for insurance? At Bajaj Capital, we believe in proposing the best to our clients and thus, we recommend investors to go through the claim settlement record of the insurance provider. The company with a good history of claim settlement ratio should always be given preference over the one claiming higher return.
According to the annual report (2013-14) released by the Insurance Regulatory and Development Authority (IRDAI)- LIC, ICICI Prudential and HDFC Life are the companies with impressive claim records. While Life Insurance Corporation (LIC) tops the chart with 98.14% of claim settlement, ICICI Prudential and HDFC Life follow with 94.10% and 94.01%, respectively. The numbers presented in this report is somewhere also related to the business age of the company, as a relatively new player in market it is understandable to have a low claim settlement ratio.
A policy holder's family would always feel dejected if his claim is not getting positive acknowledgement. Here, we need to understand the possible factors driving to repudiation and the precautions we need to adhere while furnishing claim.
- As a policy holder you should always refrain from hiding details or providing incorrect information while filling the proposal document. This ethical act of yours would definitely help you in a trouble-free claim settlement.
- Make sure all your documents have been submitted and paper works are well in place.
- Be regular with your premiums. There are stints when you miss a premium due to unavoidable circumstance, here, look out for the grace period.
- If you have even missed the grace period, you can always request the company to once again re-instate your policy after charging certain amount as penalty.
*All the figures presented have been extracted from the individual death claim figures as reported in IRDAI Annual Report 2013-14.