We often get confused for selecting the correct insurer. Normally, we go to the insurer to whom our parents associated with, or referred by our relatives, friends, etc.
As per our personal intention, we do not include insurance as essential part of our life. Sometimes, we take it as wastage of money or certificate to death.
That’s the main reason, we never analysis the insurer as we analysis for even buying a SmartPhone.
As per Regulatory of Ministry of Finance, Government of India; IRDAI ( Insurance Regulatory and Development Authority of India), IRDAI overseeing the insurance sector in India. It protects the interests of the insured, regulates and ensures orderly growth of the insurance in India.
There are some key points, before selecting an appropriate Insurer;
- Genuine Insurer – Insurer should be listed in IRDAI as no company can make an insurance contract, if not registered with IRDAI.
- Claim Settlement Ratio – It should be high, it means that company had accepted maximum number of claims out of claims received and nominal claim declined because of valid reasons.
- Solvency Ratio – it should be high of Insurer, it ensures company’s ability to meet long-term obligations.
- Proper Documentation – There should be proper documentation from both parties(insurer and insured) before the contract.
- Medical Test – If mandatory, Medical Test before insurance contract should be followed strictly by Insurer, and honestly adhere by insured.
- Competitive Returns – Returns should be high in comparison to other companies.