Lim­i­ta­tions

Consumer Voice - - Bfsi -

If the in­sured per­son hap­pens to out­live the ten­ure of the pol­icy, which all of you any­way want, the en­tire amount paid in the form of pre­mi­ums will be for­feited with­out any ben­e­fits to the in­sured. It tends to cre­ate a men­tal block as it deals with the death of the per­son tak­ing a pol­icy. If a per­son meets with an un­for­tu­nate car accident while driv­ing, he/she has to pay dam­age charges to the other party or the in­sur­ance provider will com­pen­sate him/her. On the other hand, if the per­son is a rel­a­tively safe driver and avoids any accident, the pre­mium acts more like a hedge (cover) against any event that might/might not oc­cur. Con­sumers resort to con­sult­ing their agent as they do not have the time to go through lengthy lit­er­a­tures. How­ever, un­less one is aware of the fea­tures of the in­sur­ance plan him­self, he can­not make a buy­ing de­ci­sion. Some agents mis­guide as they pre­fer sell­ing poli­cies that get them higher com­mis­sion. Pre­mium rates are guar­an­teed only un­til the end of the term, with­out any op­tion to re­new the pol­icy. You have to buy a new plan with higher pre­mium. No in­sur­ance com­pany of­fers term plan in­sur­ance to peo­ple older than 75 years. No term in­sur­ance plan is avail­able for cover less than Rs 24 lakh, re­strict­ing it to a min­i­mum pre­mium that ev­ery­body can­not af­ford.

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