With increasing digitization, buying insurance online has become easier than ever. However, many people make costly mistakes in the process due to lack of awareness or haste.
1. Not Reading the Policy Document Always read the policy brochure and document thoroughly. Don’t rely solely on summary points or agents’ claims. Understand inclusions, exclusions, and claim procedures.
2. Choosing the Cheapest Policy Low premiums often come with compromises. You might end up with low coverage, hidden sub-limits, or insufficient benefits. Focus on value, not just cost.
3. Ignoring the Claim Settlement Ratio This ratio indicates how many claims the insurer settles out of the total received. A high claim settlement ratio (>95%) reflects a trustworthy insurer.
4. Not Disclosing Health Conditions or Habits Be transparent about your medical history, smoking habits, and pre-existing diseases. Non-disclosure may lead to claim rejection later.
5. Overlooking Customer Reviews and Ratings Customer feedback provides insights into real-world service experiences. Check reviews on third-party platforms and social media.
Conclusion Online insurance purchase offers convenience but requires diligence. Avoid these mistakes to ensure you choose a policy that truly protects you when needed.
