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Home Articles 5 Important Aspects to Consider Prior to Renewing your Insurance Policies

5 Important Aspects to Consider Prior to Renewing your Insurance Policies

IndianMoney.com Research Team | Updated On Saturday, June 15,2019, 11:09 AM

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5 Important Aspects to Consider Prior to Renewing your Insurance Policies

 

 

Non-life insurance policies like health insurance, car insurance, home insurance, personal accident plan are renewed each year. When it’s time to renew your insurance policy, it’s also an opportunity to reassess insurance needs. A policy expires if not renewed and an expired policy serves no purpose. Renewing insurance policies is no more a tedious task. Insurers send a simple text message to the email address of customers, asking them to renew their insurance plans.

All you have to do is to read the text message carefully, click on the given link, accept the terms and conditions of the insurance plan, and make the payments online. While the renewal process is really easy, there are certain important aspects to be considered while renewing a non-life insurance policy. What are they?

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5 Important Aspects to Consider Prior to Renewing Your Insurance Policies

1. Review the Insurance Renewal Notice

Do remember to review the insurance renewal notice, which is a crucial document.  Personal and policy related documents must be carefully checked. For example, when renewing a personal accident insurance policy, you have to check the coverage offered for each case (permanent and temporary disability). Also check if the renewed insurance policy is in sync with your needs. If there is a mismatch in policy terms, keep the insurer informed.

See Also: Things To Consider While Availing Health Insurance Plans

2. Check Add-On Cover

An add-on cover is enhanced cover also called a rider. A rider is an additional benefit for a slightly higher premium. Policyholders must understand requirements and select the respective add-on covers. Always check if the base insurance cover is sufficient. If not, try enhancing the base cover by adding a rider. Get an add-on cover when it’s really required. Availing riders you don’t need is a waste of money.

3. Claim the Bonus Earned

Insurance companies offer an incentive called No Claim Bonus (NCB), if no claims are made during the term of the plan. In case of health insurance plans, there may be an increase in the sum assured for the same premium. In the case of car insurance, NCB is a discount offered on own damage premium. This is given if you don’t make a claim on the car insurance plan during the policy term. NCB starts at 20% and can go up to 50% across a span of 5 years.

See Also: Health Insurance Premium Calculator

4. Check the Insurance Premium Amount

Do not forget to check the premium amount when renewing motor insurance policies. In many cases, the IDV of a vehicle may be reduced by 5-10% to bring down the premiums.  Understand the premium breakup for each cover you’re going to avail. In case of health insurance, pay attention to the revised premium amount and check if it meets family needs. 

See Also: Benefits of Health Plan

5. Coverage Terms

Policyholders must review the changes in the terms and conditions of the insurance policy before renewing the plan. Insurers may offer additional benefits on an existing policy and they have to bring such changes to the notice of policyholders. The revised terms and conditions may alter an existing insurance coverage. If you are not satisfied with the terms of the revised cover, consider switching the insurer.

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IndianMoney.com Research Team

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