Tips to Buy a New Insurance Policy from Bajaj Allianz General Insurance
A good insurance plan is one of the easiest ways to protect your valuable items against any loss or damage. This is the reason all those who have some financial understanding take a required insurance plan at the right time/age. When you set out to select an insurance policy from Bajaj Allianz General Insurance, you may get amazed to see an extensive range of general insurance products offered by this company. From health to home to vehicle to travel, you get the insurance policy for almost everything here.
Bajaj Allianz General Insurance Company is a private insurance company of India that provides general insurance products. It is a joint venture between Indian company Bajaj Finserv Limited (owned by Bajaj Group) and German financial service company, Allianz SE. The company is headquarteredin Pune and as per the financial year 2015-16, it has generated the revenue of Rs.5, 900 Crores.
As mentioned above, due to an extensive range of insurance productsyou may get confused in selecting the most suitable insurance plan for yourself and your family. However, we are here, providing you some of the most useful tips that you should keep in your mind while buying a new insurance policy.
Before knowing these tips, let us understand some insurance terms as some of you can be new to the insurance industry and it may become difficult for you to get these insurance jargons.
Common General Insurance Jargons
Knowing the commonly used term of general insurance will help you to select the most suitable plan. The common jargons used in the insurance industry are:
- No Claim Bonus (NCB): If you do not raise a claim in the active policy year, then you will be able to get a discount on the premium of your next renewal.
- Rider or Add-On: A rider or add-on is an additional coverage that you can add in your existing policy inclusions by paying some extra amount.
- Insured Declared Value (IDV): IDV is associated with car insurance and defines the current value of your car including the depreciation.
- Claim Settlement Ration (CSR): It is the ratio of the number of claims settled by the insurance company to the number of claims it has received in one year.
- Claim: A claim is when you request the insurance company to pay out for the damage or loss in respect of your policy purchase.
- Premium: An amount of money that you pay to your insurance provider for the insurance policy.
Tips To Buy an Insurance Plan from Bajaj Allianz General Insurance
Follow the below-mentioned tips when you are purchasing an insurance policy from Bajaj Allianz General Insurance:
- Know the Purpose of Your Purchase: You must know your objective of taking an insurance plan. If your soul purpose to take an insurance policy like health insurance is to get tax benefits, then you should select a plan in that you have to pay low premiums despite smaller coverage. However, if you actually want a health insurance cover for yourself and your family, then select a policy that provides comprehensive coverage at an affordable premium. Since the Motor Vehicle Act mandated the motor insurance in India before a vehicle starts plying on the roads, thus you have to take it. As per this act, you can even opt for a third-party motor insurance plan. In a third-party vehicle insurance policy, you become legally liable for paying against the damages or losses to third-party after an accident with your vehicle. However, if you want an insurance policy that covers your own vehicle against loss or damage in an accident apart from third-party compensation, then opt for a comprehensive motor insurance policy. The same strategy applies for a travel insurance plan or a home insurance. Understand your requirement first or the purpose for which you want to have an insurance policy, and then select the best variant of that plan provided by Bajaj Allianz General Insurance.
- Know the Coverage: After knowing your purpose of purchase, now understand the coverages that are included in it. There can be various different plans available in the same category. So, shortlisting them on the basis of coverage that you want. Most of the insurance plans offered by Bajaj Allianz General Insurance Company provide comprehensive coverage so select one that covers your most of the requirements.
- Understand the Riders of the Policy: Riders are the add-ons that you can add in your existing insurance policy. So, if you think that any of your shortlisted insurance policies do not provide all your required coverage, then you can see the riders available for them. A rider most of the times, completes a policy.
- Be Aware of the Exclusions: Every insurance policy has a set of exclusions. So, it is suggested to know the exclusions of a policy before buying it. The exclusions are the clauses for which Bajaj Allianz General Insurance does not pay the claim. Almost all insurance policies of Bajaj Allianz General Insurance mention exclusions in policy documents.
- Be Aware of the Exclusions: Every insurance policy has a set of exclusions. So, it is suggested to know the exclusions of a policy before buying it. The exclusions are the clauses for which Bajaj Allianz Insurance does not pay the claim. Almost all insurance policies of Bajaj Allianz mention exclusions in policy documents.
- Understand the Renewal and Claim Settlement Process: The renewal and claim settlement process of most of the policies of Bajaj Allianz General Insurance is simple and fast, but check its terms and conditions beforehand.
- Check the ‘Free-Look’ Period Beforehand: A ‘Free-Look’ period is a time during which you can change the term of your policy or can cancel. It basically gives you a chance to roll-back your decision, if you do not like it. Even though most of the insurance policies of Bajaj Allianz General Insurance provide you comprehensive coverage, but if you are a first-time insurance buyer, then you may get confused. Therefore, this period is to give you the flexibility of changing or canceling a policy.
- Opt for Online Purchase Option: You can purchase an insurance policy of Bajaj Allianz General Insurance either online or offline, but the online option is better. It is because online purchase gives you an opportunity to explore more options and compare them on an insurance web aggregator. Moreover, the premiums of online policies are lower as compared to the policies that are taken through agents. Therefore, it is suggested to not to waste money in understanding a product through an agent, when all necessary data are available online. So, this is another useful tip for purchasing a new insurance plan.
These are some of the basic things to keep in mind while purchasing an insurance product of Bajaj Allianz General Insurance Company. However, there will not be any policy that will be a perfect fit for you, but keeping these points in mind will make you select the most suitable insurance plan of Bajaj Allianz General Insurance for you and for your family.