Here’s Why You Should Be Buying Insurance Policies Online, Not Via Agents

In these challenging times of tough competition and high pressure, it’s not easy to find time to research on what type of policy that one must opt for. Usually, many people prefer to get in touch with an insurance agent to buy an insurance policy and be done with it. Many make the mistake of not checking out clearly how much premium they should actually be paying and what they finally end up paying. Also, many get drawn in by the sops and freebies some policies offer without taking into account the actual benefits in terms of covering all types of risks. But with the ingress of the internet and changes in insurance sector, an online option can save you time, the trouble of documentation and additional costs. Plus buying a policy via an online aggregator is a more transparent process as it does not have any hidden costs and you can compare premiums, disadvantages and sops of other insurers. Even so, an online platform for buying insurance may not always be the right answer in case specially customized solutions are required and if the insurance product is complicated and needs further explanation. This is where the traditional insurance agent is still invaluable. This blog explores what you should watch out for while hiring an agent to buy your policy: 

1.       Buy plans now, or they maynot be available later

This is the most common marketing gimmick. Even if an insurance policy is withdrawn from the market by the insurer, it will be replaced with a more customer friendly policy. This includes the possibility of the premium being scaled down as well. So, don’t fall for this trick. Instead, do a research of the market and call the insurer to check all facts. Thereafter you decide whether you need this policy at all or should you buy another policy.

2.       Conning in the name of IRDA

It may be claimed that a 'bonus' has accumulated with respect to their policies and which is being allegedly polished off by their agents. The client is then instructed to deposit some amount with the 'representatives of IRDA' to ensure that the bonus is transferred to the policy holder. This is a fraudulent practise.

3.       Buying apolicy in your name without your consent

This is the most shocking practice which is why you must thoroughly check the credentials of your insurance agent. There have been instances where agents collected money from prospective policy holders but bought a policy which the client did not know of or need. This caused a lot of harassment to these clients as these policies could not be cancelled.

4.       Circumventing the freelook period

After an insurance policy is issued to the policy holder, the latter can exercise the right to opt out of the insurance policy within 15 days of its issue. This time period is known as the ‘free look period.’ By taking this option not only will you be fully refunded but you will also not have to pay any extra costs. This also means you can opt for another insurer after opting out. The modus operand adopted by some agents is that they send policy documents after the free look period is over. So if you anticipate a delay in receiving your policy, its best to opt for an immediate cancellation,

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Planning Retirement: Here’s What You Need To Know

In today’s fast paced world, it’s always a challenge to be prepared for any unforeseen situation or disaster which may strike anytime or anywhere. In this situation, its best to insure yourself to combat whatever life throws your way. Given the plethora of pension plans in the market, it’s not easy to make the right choice that will see you through your sunset years. But what you must know is that to live a life of dignity and independence, it is very important to set goals now so that you have a hassle free retirement in your later years. This blog explores what you can do to ensure your interests are safeguarded, in all possible ways.

1.       Create a roadmap for the future

It is normal not to worry too much about the future and focus on the present. But it would be even wiser to take stock of your current position in terms of finances, your needs, lifestyle, the kind of money you spend, and what you save every month to build a future. Ask yourself these basic questions. How much money do you spend on shopping / entertainment each month, do you pay loans or EMIs on your car or any other assets, do you have any liabilities in the present scenario? Evaluate what kind of lifestyle you want to have when you retire, where would you want to live and what will be your liabilities at that time.

2.       What are your goals for the immediate future?

This is a very important aspect of your future. Are you planning to invest money in some property or house and have you set aside a corpus for your child’s education, marriage and other important goals? These factors and the above mentioned points will help you make a realistic assessment about the amount of money you can set aside to pay a premium and buy a pension plan of your choice.

3.       When do you start?

As the saying goes, an early bird always gets the worm. It is best to invest in a pension plan when you are a young professional. This is because as you grow professionally, so will your salary and you will be able to shed off debts and liabilities faster and plan your retirement intelligently. Even if you have had a late start, it is never too late. Plan nicely and wisely.

4.       Buying a health insurance

Even though you’ve maintained a good health graph so far, as you grow older, your body will slow down and you have to be more cautious about your health. Ailments and diseases, whether they are serious or just temporary do not come with a warning. Also, if you have a history of pre existing diseases like diabetes, stroke and heart diseases in your family, it makes sense to ensure that you have a robust health plan which will come in handy when you need it the most. So when you buy a pension cover, ensure that you have a comprehensive health plan too.

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Important Things That You Must Know About Car Insurance

In these times of tough competition and big business challenges, insurance companies are leaving no stone unturned to woo prospective clients. In the last decade, while sops and discounts on car insurance have multiplied, so have the rate of accidents and unforeseen situations. In this scenario where the consumer is spoilt for choices and has the edge over his insurer what can he do to make sure he has the best deal? This blog explores this aspect.

In India, everyone knows about the importance of having a car insurance as it is mandatory under the Motor Vehicle Act, 1988. Even now, as every Indian family in a metropolis and even a small city now has the luxury of owning two cars at least, many people are still unaware about certain aspects of car insurance that can bail them out of sticky situations. Here’s a list of potential hazards which you can skip, using knowledge and your right as a consumer:

1.      Do you have a comprehensive car insurance policy?
In this type of policy, besides accidents, your car is insured against a host of other mishaps like a broken windscreen, theft, riots and vandalism. Damages caused by unforeseen acts of nature like floods, cyclones, falling trees, birds/animals, falling trees, earthquakes are covered here. If you don’t opt for this cover, then when a calamity does strike, you will end up paying from your pocket.

2.      Hydrostatic cover
Imagine a situation where you’re wading through water or your car is immersed in water in parking lot. You turn the key in the ignition and after a few seconds, your engine falls silent. Repeated attempts yield no results.This is a unique, add on cover that ensures your additional expenses like engine damage among other things are taken care of. This also takes into account full replacement of engine and other parts, if required.
 
3.      Factoring in Depreciation Cover for insurance
If your car has been standing in water for some days, then it is necessary that a surveyor comes to the spot and makes an assessment. This will be done on the basis of the age of your car. This means that if it has been less than 6 months since the car was purchased, then there will be at least five percent depreciation before the insured declared value or IDV is taken into account. If the car is a year or two years old, then the IDV will be 20% as opposed to 30% for a vehicle which is 2-3 years old. For a vehicle older than this the depreciation would be 40%. There won’t be any compensation for a music system, air conditioner andCNG kit. But depreciation will apply on plastic parts, rubber, nylon, batteries and airbags.

You can definitely consider taking an add-cover for your car. These include a 24x7 roadside assistance for your car in case of a breakdown. This will be very handy during the monsoon season. Also it’s always a good idea to take the policy from an online insurance aggregator so that you can compare features and prices, and take the policy that suits your needs and your pocket the best.

Buying A New Car? Here’s How You Can Reduce The Premium On Your Car Insurance

Whenever you buy a new car, your car dealer will present you with varied sops that will come with an insurance policy which very often may be free for a number of months or a year. In this situation, you still need to evaluate what are the inclusions in this policy and what is missing. This blog presents a checklist of factors that can help reduce your car insurance premium significantly.

If you’ve got a free car insurance policy on your new buy, then know this that it may not cover everything. Damages owing to manmade and natural disasters like riots, cyclones, floods, landslides etc., may not be covered in this policy. Also, the free insurance may not be free after all, as the insurer would have recovered the cost of your premium via the money you gave to your dealer for buying your car. In this situation, it’s advisable to read the fine print carefully and evaluate whether you really need that freebie. This is because you could buy a separate insurance cover and get a discount on your car instead.

Whenever your car suffers damage, then the cost borne by you is known as a deductible. It comes in two forms: a voluntary and a compulsory deductible. In the latter, you pay a certain amount like Rs 500 while the rest of the claim is paid by your insurer. In a voluntary deductible, you can reduce the car premium. However, in the event of a claim, you have to pay a significant portion of the claim yourself. So you have to be sure of which deductible you’re opting for, and what exactly it entails. The other thing is that you can consider opting for a voluntary deductible only if you’re sure that you’re an ace driver and the likelihood of an accident is almost none.

It’s always advisable to buy an insurance policy via an online aggregator rather than an insurance agent. This not only saves you time and scales down effort, it also helps you compare premium rates of all policies and zeroing into one that suits all your requirements. Online research and analysis will also help reducing your insurance premium not only in the first year, but also in the following years as well.

The Insured declared Value (IDV) of your car, is yet another significant factor to dwell upon. This essentially means, that the higher the value of your car, the higher is your policy premium. Some people choose to declare a lower value of their car to have a lowered premium rate. But the catch here is that if your car gets stolen, then your claim gets reduced too. However, a lower IDV doesn’t impact claim in case of an accident.

Voluntary declarations like usage of your car, driving records and other facts may scale down your premium to as low as 10%. Certain moves like becoming a member of the Automobile Association of India and installing car safety devices can put you in the category of a safe driver and reduce your premium. A no claim bonus - where you’ve not made any claims for the insurance duration - too works in your favour.

Single Premium Life Insurance Policy

In today’s world everyone is aware of the challenges and unforeseen situations that can manifest anytime, anywhere. Even though you’re cautious and aware of the pitfalls of modern life, insuring yourself against these dangers is a sensible thing to do. This is where it makes sense to avail the benefit of a life insurance policy as it buffers you against disabilities and also takes care of your family in the event of your death. Now, imagine a scenario where you are saved the hassle of coughing up a designated premium year after year for a life insurance policy. Instead, what if all this can be achieved in a single stroke without any worry? It is definitely possible with a single premium life insurance policy as it’s your best bet.

This type of policy is good for those who can pay a lumpsum in a single stroke. Like conventional life insurance policies, this policy too provides a security umbrella to the policy holder until the full policy term. This type of life insurance policy is gaining popularity because of the ease of purchase, and also ease of operation. It has been found that affluent urban groups are now preferring this policy for just these reasons.

Benefits of single premium life insurance

·         A tax benefit is provided in this type of policy on the premium paid which is applicable under section 80C.  This is applicable if the premium amount is at least 20% of the sum assured or if the sum assured is at least 5 times the premium.

·         You don’t have to worry about your policy getting lapsed.

·         In case you need to avail of a loan facility, this can come in handy and can be used as collateral against your loan. 

·         Peace of mind as you don’t have to set aside any money from your yearly spend for annual premium.

·         This type of policy is best for those professionals who are at the peak of their productivity and can afford to pay the premium in a single stroke.

·         For a frequent traveler, this is a blessing in disguise as he doesn’t have to worry about paying his yearly premium on a fixed period.

·         If you have a high salary then you can opt for a higher premium.

·         If you’re unsure about your future earning potential, then go for this policy.

·         In case a critical illness or if disability strikes the policy holder, even then his family is taken care of.

·         The accidental death clause also takes care of the family.

Buying this policy via an online aggregator makes more sense rather than following the traditional route of contacting an agent for this type of policy. This has multiple benefits as it proves to be not only cost-effective, but saves time and can be done from the convenience of your home or office. It is also a transparent process. You also have the additional advantage of comparing premium quotes and other factors like special benefits and sops. What you must watch out for are riders.

Insurance Policies That Provide A Security Umbrella During Natural Catastrophes

Acts of nature like earthquakes, floods and fire outbreaks in forested areas can happen anytime, anywhere. These not only cause considerable damage to property and life, but the consequent losses can also wreak havoc with your finances. It’s always a good thing to be prepared for the unexpected while creating the best security umbrella for yourself and your family. Therefore, it’s best to opt for certain types of insurances that will safeguard you and your finances, in the best possible way. This
blog explores four types of policies that can help you deal with catastrophic situations in a better way.

Property insurance

When a disaster strikes, besides life there can be irreversible damage caused to one’s property like a home/office/factory/shop etc. The disaster can include accidents like a sudden outbreak of fire, flood, cyclone and any other disaster. Here, a certain premium is paid to cover losses that arise owing to catastrophes. This type of cover also includes sub-categories which attempt to maximize the cover for any risk or danger that may arise to your property. These include:

A Fire Policy: This cover extends to places of worship, homes, offices, businesses etc. The best part is that property insurance also covers what are known as Acts of God, e.g. landslides, floods, cyclones, hurricanes, storms, earthquakes, etc.

Umbrella Policies: Essentially, these are add on covers that give an extra buffer in times of need. The good news is that these policies can be clubbed in a single document, saving you extra paperwork and time. Umbrella policies include shopkeeper’s policy, office package policy, building insurance, householder’s policy.

Hydrostatic Lock Cover

While taking their car insurance, most people don’t know about a very useful add-on cover called “hydrostatic lock cover”. This add-on is especially useful in flood and water logging prone areas, where it can literally keep you afloat. This policy takes care of additional expenses like engine and also takes into account full replacement of engine and other parts, if the need arises.

Whether your car is parked in a waterlogged area or passing through a deluge, water will enter your car. Never turn the key in the ignition because it can lead to engine breakdown and damage not only to one or two parts but the entire electrical circuit. They might need replacement and this could escalate expenses.

Personal accident cover & life insurance policy

During the time of an earthquake, cyclone, flood or any other calamity a temporary or permanent disability or even loss of life can impact your family severely. If you have a personal accident cover and a life insurance policy then, most of your problems that may arise because of these disasters, may be sorted. A personal accident cover offers you financial aid in times of a disability which may be temporary or permanent. Depending upon the type of policy you opt for, a life insurance cover will also take care of the policy holder’s family in case of his demise, by offering a lump sum amount.

Because a catastrophe can happen anytime, its best to always stay protected against the unfortunate consequences of such events. It’s a good idea to compare your options online before taking a policy so that you can weigh the pros and cons before making a decision.

How Technology Is Changing The Future Of Insurance

Like everything else, over the years insurance 

sector has undergone a paradigm shift and a metamorphosis from its original avatar. Today, technology has bridged the gap between an insurance company and the insured via digital revolution where online aggregators have made the insurance sector more transparent, accessible and easy to understand. But the march of technology will not end here. As there are continued advancements in this field, it is but obvious that the insurance sector too will be impacted by changing technology and its demands. This blog explores that aspect.

The first and foremost impact which is already manifesting itself is the digital revolution which has led insurance companies to interact and deal directly with their customers, rather than  go down the traditional route of interfacing via middlemen. The emergence of online aggregators is already proof of that fact. Thanks to technology, insurance business is now more accessible and it is convenient to buy a policy at just the click of a button. What’s more is that the prospective customer has the advantage of comparing the pros and cons of each policy along with sizing up which premiums are low and suit his budget the best.

The other most impactful change is that insurers are now offering mobile applications which are helpful in reporting claims and accessing information. For example if a car is involved in an accident, the car owner can now immediately transmit the accident picture live, thereby speeding up the process of filing the claim in a big way. This could well be a common scenario, for the future.

Thanks to major advances in software and hardware, insurance companies are now witnessing a major surge in data collection that is translating into higher business returns. For instance, the process of underwriting, which depends on individual risk assessment which sets the premium pricing is impacted in a big way. Now, customer data is providing actionable insights resulting in improving the customer experience.

One of the most interesting trends unfolding itself in the insurance sector is probably the rewriting of some traditional insurance methods. Take the concept of self-driven cars.The question is when cars are in a futuristic scenario where most of the functioning is based on software that works on certain formulae and algorithms, if something goes wrong who will be held responsible? Will the car manufacturer take responsibility or will the onus rest on the shoulders of the person driving the car? The insurance industry, software companies and the car manufacturers will have a lot to think about and consider. The other aspect of auto driven cars is that the number of accidents and cases of drunken driving will reduce drastically. Severity of accidents is also expected to reduce in this scenario thereby bringing down insurance costs. But natural factors like cars being damaged due to floods, cyclone, earthquakes and other calamities could still be a risk to auto driven cars. These factors could potentially impact the underwriting business and usher in technology driven and related changes.