India has 53 registered insurance
companies out of which 29 are non-life insurers and 24 companies offer life
insurance. Between April 2015 and February 2016, premium income of more than
Rs.1 trillion (US $15 billion) was recorded in India. By the end of 2020,
insurance companies expect to increase their penetration of the Indian market
by another 5%. Most companies offer additional advantages, like loan
against insurance policy, making it very popular in the country. Currently,
India represents the largest life insurance market, with around 360 million
policies in action. With the emergence of more and more service providers,
policy holders are getting better deals but it has also increased the number of
frauds. So, it is very important to choose the right company as well as policy
for yourself. Factors like benefits and premium should be considered.
Things You Should Keep in Mind
- Analyze
and Plan: Before you go to shop for
clothes, you analyze exactly what you need. In the winter, you don't go
looking for shorts. Insurance works in exactly the same way. It is
important you do your research and plan accordingly. For example, which
family member do you want to cover? Do you aim for the long term or are
you looking for short term cover? This will help you narrow down the
options.
- Set
Priorities: You need to understand the
concept of 'sum assured'. It is the maximum amount that you can claim in a
policy year for medical coverage or as the payment at the maturity of
another policy. If you want more coverage, then you'll have to pay a
higher premium. So, set your priorities from the very beginning.
- Read
the Clauses: It is very important to
understand your policy and for that you need to read the terms and
conditions very carefully. Most companies have a number of clauses that
are very often difficult to understand. If you have any doubts, don't be
shy to ask the agent or the insurer.
- Look
for Extras: Some of the policies offer extra
benefits, like loan against insurance policy, and even offer discounts on
premiums for some time. You may not want to claim these offers right away
but they can be beneficial in future.
- Go
for a Trusted Brand: Most of the new brands try to
lure customers by offering discounts but on most occasions, it is a trap.
Do not fall for such offers. Do extensive research about the brand and
prefer to go for an already established firm.