Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Here are 5 things only smart people know about insurance: Look Period

"You’re stuck with an insurance policy once you’ve bought it? Think again."

According to the IRDAI, there is a Free Look Period for all life insurance policies, and all health insurance policies that last longer than 3 years . During this period, which usually lasts for 15 days, you can review the policy terms and conditions, and in case any of them are not agreeable, then you can hand the policy back and get a refund. The only condition is that you must communicate this to your insurer in writing.


​2.No Claim Bonus

"Didn’t make an insurance claim and thought you’ve lost money on your premium? When it comes to car and health insurance, that isn’t true."

If you go an entire year without making a car insurance claim, you are rewarded for safe driving with a No Claim Bonus of up to 20% when you renew your premium. Every year, this percentage increases, and if you go 5 years without making a claim, your premium can reduce by 50%. This benefit is also available in the form of an increase in sum assured, which is what happens in the case of a claim-free year of owning a health insurance policy.



"No matter how carefully you choose your insurance policy, there are always some situations that even the most comprehensive policy does not protect you against."

‘Riders’ are essentially add-ons to your insurance policies that give you additional benefits at an additional premium, thereby filling in any gaps in your existing cover.


For instance, let’s say you make a car insurance claim, and as a result, lose out the chance of getting a No Claim Bonus. But with a No Claim Bonus Protector rider, you can make up to 2 claims a year without losing out your benefit.

 4.Premium Reduction

"If you don’t smoke or drink, you save a lot of money on avoiding such purchases. But did you know that living healthy can save you premium costs?"

Before an insurance policy is given to you, your insurer carries out a process called “underwriting” where in your riskiness is assessed. The better health you are in, the less chances of you making a claim for a large amount, and thus, your insurers would offer you a lower premium. Usually, insurers offer different premium for smokers (highest), non-smokers (normal) and preferred non-smokers (lowest) , the last of which usually has a very healthy family background as well.

5.Online buying

"The internet can help you do a lot more than speak to your friends and watch the latest music videos."

Be it on your laptop, PC or smartphone, you can now also buy and renew your insurance policies online and avail a series of benefits. Firstly, you can enjoy the freedom to transact whenever you want, rather than finding time to go your insurance company’s office. Secondly, you can enjoy cost-saving because online plans cost less comparatively to offline due to absence of intermediaries. 

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