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Know Your Rights before Buying an Insurance Plan

In today’s time, everyone is well aware of the significance of life insurance plan in our lives. But just for the sake of buying a life insurance plan, people often miss to know their privileges and rights as an insurance buyer. Generally, for many buyers finalizing the plan according to their requirement is the matter of utmost importance. However, there are several other aspects which are equally important and should be considered while zeroing in on a life insurance plan.

As per a review made by the leading insurance analysis company, it shows that the awareness of rights among the consumers is very appalling. So further, in this article, we have elaborately discussed the rights and privileges possessed by the insurance seekers while buying an insurance policy. 

Know your Rights as an Insurance Policy Holder

Before you buy a plan, don’t miss to check the flexibility of plan like what is the grace period of the plan? What is the free look period? How many days does it take to settle the claim? Having clear information about all these points, while buying a plan, is very crucial.

Right to Receive Information about your Insurance Policy

According to the guidelines stated by IRDA, the insurers must provide all types of information asked by the policyholder. An insurance buyer has all the rights to query about all the significant information including the advantages that he/she is liable to get from the policy. The insurance buyers are required to fill a certificate form as provided by the insured in order to certify whether they are cognizant about the necessary features and information offered by the policy. As per the IRDA guidelines, it is clearly stated that at the time of selling the policy, the insurance company must provide all the required information related to schemes to the buyers. This helps the buyers to analyze whether the plan is of their interest or not.

Right Concerning the Termination of Insurance Policy

In case, the policyholder is not satisfied with the insurance plan after buying it, then he/she can cancel the policy within initial 15 days and are accountable to get the entire amount back. In case of free look period, the insurers are only liable to cut the surrender charges. In most of the cases, the policy buyers are unaware of this facility and face difficulties due to it. So, in order to avoid being fooled by the insurance agent, it is very important to have prior knowledge of the plan. With a bit of research and awareness, one can save a lot of time and money.

Right Related to Premium Payment

For some of the insurance holders, it becomes difficult to pay the premium in the lump-sum amount at times. So, keeping the convenience of customers in mind IRDA has provided right to the insured to change the frequency of premium payment. One can apply the commencement form, of the respective year, to change the premium amount.

Rights for Filing Complain Against Any Insurer

If the policyholder finds anything wrong in the process of policy then he/she has all right to file a case against the insurance company. These types of issues mostly arise when the insurer charges more for the premium or make excuses at the time of maturity. In such situations, most of the time policy buyers fail to take adequate action against the insurance company because of their lack of knowledge. So, in case this type of issue arises, don’t forget to file and case and complaint against the company, because no insurance companies want to take the hassle of these problems and will work immediately.

While some of the insurance buyers may think that winning a case against the insurance company is next to impossible, but it’s not true. If you have a well-equipped knowledge and your case is legally valid then the insurance company will surely be questionable by the IRDA. As per the requirement, the insurance buyer can also contact to IRDA and IGMS to complain such issues and can also get the assistance of consumer forum.

As there do large numbers of insurance companies exist in the market, it is very crucial to have a proper understanding and do research for choosing the most beneficial plan. Remember that you have all the rights to check the policy documents and know the pros and cons of the policy. By knowing your rights and privileges towards the policy, you can easily spot the discrepancy and make the best use of your policy.

Written By: PolicyBazaar - Updated: 19 August 2020
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