Whenever people go to buy insurance, they first pay attention to the Claim Settlement Ratio, i.e., CSR. It shows much percentage of claims the company pays. Although this is an important parameter, experts believe it is not sufficient to base insurance purchases solely on this criterion.
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Importance of policy coverage and sum assured
Probus director Rakesh Goyal says that sum assured and coverage are more important than CSR. The insurance amount should be enough so that the financial condition of the family can remain stable when needed. It is also important to see what is included in the policy and which conditions are excluded.
Exclusions, riders, and waiting period
While taking out insurance, always check which diseases or conditions the policy does not cover. Information about additional benefits or riders like critical illness, accidental coverage, etc., is also important. Especially in health insurance, the waiting period should not be ignored.
Network hospital and garage facility
Before buying a health and motor insurance policy, it is important to see how many and where the company’s network hospitals and garages are available. This facility is very useful in emergencies.
Keep an eye on the financial position of the company
According to Anup Seth, Chief Distribution Officer, Edelweiss Life Insurance, insurance is not just a financial transaction, but a long-term relationship. Therefore, it is important to check the financial strength of the company. For this, pay attention to the company’s AUM, returns of previous years, and actual returns after tax on guaranteed plans. Also, understand the hidden charges in policies like ULIPs.
Customer experience and transparency
CSR only tells the rate of payment, not how simple the claim process is. If the settlement of the claim gets delayed for months, the family’s problem increases further. Therefore, it is important to assess the customer satisfaction score, complaint redressal system, and digital services.
Always choose coverage as per the need
The insurance coverage should be decided according to the individual and family needs of the person. Decide the sum assured by taking into account existing debt, annual income, children’s education, and future major expenses like marriage or house.
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Do ask questions on the claim process
Before buying a policy, it is important to understand what documents are required for a claim, what the payment timeline and whether you can nominate primary and secondary beneficiaries. Clarity on these things makes the insurance more reliable.
