Weigh­tage Cri­te­ria

Consumer Voice - - Bfsi -

En­try Age

The en­try age to join the term plan pol­icy is between 18 years and 70 years. It is not a very im­por­tant vari­able as al­most all the en­trants take this pol­icy more as a hedge than as an in­vest­ment prod­uct. Hence, we have as­signed a weigh­tage of 5 points for max­i­mum age cover.

Min­i­mum SumAs­sured

This refers to the min­i­mum in­sur­ance cover of the term plan pol­icy and is per­ceived as an

in­flu­en­tial vari­able, but does not ma­jorly af­fect the de­ci­sion of the buyer. So the weight as­signed is 5 points.


Most buy­ers are cost-con­scious, so we have taken this as the most im­por­tant vari­able that can af­fect a con­sumer’s buy­ing de­ci­sion. The weigh­tage as­signed is 15 points.

Max­i­mum Sum As­sured

Of all the in­sur­ance com­pa­nies we eval­u­ated, there is no pol­icy with cover of less than Rs 24 lakh. This is the fourth in­flu­en­tial vari­able for the con­sumer and can af­fect his de­ci­sion. We as­signed 10 points to this.

Min­i­mum Pol­icy Term

Amongst the in­sur­ance com­pa­nies taken up for prod­uct com­par­i­son, none of them of­fer less than five years as the min­i­mum pol­icy term. This casts only a mi­nor in­flu­ence on the con­sumer de­ci­sion and is weighted at 5 points.

Max­i­mum Pol­icy Term

This vari­able has been iden­ti­fied as the fifth­most im­por­tant in­flu­en­tial fac­tor af­fect­ing the con­sumer’s de­ci­sion while tak­ing a pol­icy. No in­sur­ance com­pany in our list of­fers less than 20 years cover. So, we have as­signed 10 points to this fac­tor.

Pre­mium Mode

A mi­nor vari­able, but it can in­flu­ence the con­sumer’s de­ci­sion in choos­ing the pre­mium mode. In­sur­ance com­pa­nies are of­fer­ing one­time pay­ment or yearly, half-yearly, quar­terly and monthly pay­ment op­tions. We have as­signed 5 points.

Sur­ren­der Value

A few of the in­sur­ance com­pa­nies are of­fer­ing sur­ren­der value when the pol­i­cy­holder de­cides to dis­con­tinue the pol­icy dur­ing the pol­icy pe­riod (af­ter the manda­tory pe­riod or a num­ber of paid pre­mi­ums). As this makes sense to con­sumers, we have as­signed 10 points.

Rider Ben­e­fit

A few of the in­sur­ance com­pa­nies are ex­tend­ing this ben­e­fit on pay­ment of ad­di­tional pre­mium, but this does not di­rectly bear much in­flu­ence on the con­sumer’s de­ci­sion. Hence we have as­signed 5 points to it.

Ma­tu­rity Ben­e­fit

A cou­ple of the in­sur­ance com­pa­nies un­der the term in­sur­ance plan of­fer this ben­e­fit wherein pol­icy ma­tures at the end of the pol­icy pe­riod and if the in­sured sur­vives the pol­icy, they get the de­posited pre­mium amount plus a nom­i­nal amount as ‘re­turn’. As this is the sec­ond-most in­flu­en­tial fac­tor for the con­sumer, we have as­signed 10 points.

Claim-Set­tle­ment Ra­tio

This is per­ceived as the most in­flu­en­tial vari­able and can be the de­cid­ing fac­tor for the con­sumer. The more the per­cent­age of claims set­tled, the bet­ter rat­ing the in­sur­ance com­pany will have in the mind of the con­sumer. Hence we have as­signed it 20 points.

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