How to Choose the Right Insurance Company?

Insurance of any kind provides financial protection to the insured member in his or her hour of need. Life insurance plans like the traditional term plans offer death benefits to the beneficiary/nominee in the unfortunate event of demise of the life insured. Likewise, health insurance plans offer coverage against medical expenses incurred by the insured member during the policy period.

Motor insurance like bike insurance and car insurance policies provide coverage against third-party damages. What's more, motor insurance is mandatory for all vehicles on public spaces in India.

Now that you know the benefits of having an insurance, let’s focus on choosing the right insurance provider to invest with, You can check them online here. Be it term life insurance or general insurance, here are some useful tips to help you choose the right insurance company:

• Before purchasing an insurance policy, do some research online about the history and reputation of the insurance company.

• Visit the official website of the insurance provider and click on the 'About Us' section to read about the insurer. Most companies, list their partners, investors, and Third-Party Administrators (TPAs) on the website. You can also take a look at the awards and accolades received by the insurer over the years.

• Check the Claim Settlement Ratio (CSR) of the insurance company for the previous year. A high CSR indicates the insurance provider’s ability to settle a high number of claims during the previous financial year.

• Some travel insurance companies offer discounts for those who purchase travel insurance policies online. Likewise, you can also compare various life insurance policies online across the top insurance providers before selecting the one that best serves your needs. You can also check your health insurance eligibility on the insurer's official website or a reliable third-party website.

• Choose an insurance provider with a simple and easy claim process. Go through the claim intimation clause carefully. In the case of a vehicular accident or theft, you have to intimate your motor insurance provider immediately after the occurence of a claim. In the case of an unplanned/emergency hospitalisation, intimate your health insurer within 24 hours of admission and for planned hospitalisation, intimate the TPA or insurer 72 hours prior to admission.

• Find out the financial strength of the insurance company so as to avoid any hassle at the time of claim settlement. You don't want to invest with an insurance company that can't settle your claim as a result of poor financial status.

• With the advent of technology, most insurance companies provide online facilities to purchase an insurance policy. Even policy renewal and claim intimation can be done online. This way, you can save your time and money. With just a few clicks of your mouse, car insurance renewal or health insurance claim can be made from the comfort of your home or office.

• Some insurance providers offer special features and benefits to cater to the varying needs of their customers. For example, customised cancer health insurance policies for cancer patients and beneficial child insurance plans for the educational needs of your children. Choose an insurance company that offers innovative products and services.

• In the case of a motor insurance provider, choose one with a wide range of network garages where you can avail cashless facility. Same goes for health insurance, choose a health insurance company with a wide range of network hospitals across the country.

• To beat the competition, insurance companies compete with each other to provide excellent customer service. Ensure your insurer has a 24/7 helpline number to resolve your policy-related queries. Easy claim intimation process, online premium payments, 24/7 customer service, and instant notifications of policy changes are some of the main features to look for when choosing a reliable insurance provider.

• If you are satisfied with your current insurance provider, then why not invest with the same insurer for your other insurance needs. For instance, if you have purchased health insurance policy from a general insurance company who also provides motor insurance, then you can purchase a car insurance or two-wheeler insurance policy from the same insurer.

These tips can also be helpful if you are considering transferring your insurance policy from one insurer to another. The Insurance Regulatory and Development Authority of India (IRDAI) allows general insurance portability in the case of health insurance and car insurance. This option is beneficial in case you are dissatisfied with the high premiums charged or less features offered by your current insurance provider. In conclusion, choose a reputable insurance company that offers easy claim process, innovative products, and excellent customer service.

This article has been produced by TNM Marquee in association with BankBazaar.