Online insurance products are policy agreements not physical objects. So, there are chances of mis-selling of plans. Representatives of insurance companies in India must suggest something suitable for your requirements and thoroughly explain what it can and can’t do.
As a customer, you must know the risks related to the product. Understanding the product completely is necessary for a good deal. Insurance policies online
are difficult to understand and are available in various insurance types such as life insurance, general insurance etc.
Buyers must ask distributors relevant questions and know how the plan will fit the individual’s savings and long-term protection needs. Insurance companies in India and the Insurance Regulatory and Development Authority are taking different initiatives to prevent mis-selling of policies.
The transparency level and information availability to the insured to take the correct decision has been improved significantly. Its duty of an insurer’s representative to explain the plan to a potential customer and explains how the policy fulfills the certain requirements of the buyer.
Policyholders are aware of the premiums, benefits and charges payable under the policy. Gathering this information helps to protect the policyholders from mis-selling. Circumstances of every individual need several types of plans and hence, people have different requirements. Carefully read brochure details before signing the policy document:
• Know the plan being provided to you
• Risk coverage
• Future maturity benefits
• Any benefits or payments during policy period
• Make sure about your premium payments comfort including payment mode, premium amount etc.
• Carefully read the marketing brochure
• Ask relevant questions to the representative of insurance companies in India, including inclusions, exclusions etc.
Once you get the policy agreement, read it immediately and then contact the service representative if you have any insurance related doubts. If you find the benefits are not in line with your requirements, then make use of the option to cancel the policy within free look period by contacting to the insurer in written.