Here is a list of 18 consumer benefits:

Privatisation: After years of being a monopoly, the sector opened with the first private life insurers setting up operations in 2001.

Free Look Period:You bought a policy and received the policy document and figured that the terms and condition are not what you wanted. Within 15 days of receiving the policy document, you can cancel it.

Riders:A way to enhance the scope of your cover—riders was additions to a life insurance by which you could increase the scope of cover at a marginal cost.

Online Policies: You have the advantage of not just renewing your policy online; you can also buy life insurance online through company websites as well. Many of these are priced differently (less) because these do away with the intermediary.

Term Plans:These are what life insurance policies are meant for—pure protection. The way private insurers advertised these products not only exposed consumers to a new way of understanding life insurance, it also resulted in many of them buying higher risk covers.

ULIPS: Unit linked insurance plans as a product category opened the gates of transparency with life insurance products. The structure of this product divides the insurance from investments and treats the two separately. Regulations over the years have made them a good option to consider for first time passive investors.

Brokers: Introduction of insurance brokers is a boon for policyholders as they now can purchase insurance from brokers who act in their interest rather than agents who act in the interest of the insurance companies.

Cashless: No more do you need to pay the full claim amount from your pocket and then run from pillar to post to recover the same from the insurer. Most health and motor policies come with a cashless facility, which saves you the pain of paying upfront.

Portability: No more are you stuck with the same health or motor insurance. You can move across insurers without losing on your existing policy benefits, providing you with the choice to be with an insurer with better services. This could be costly compared to your existing premiums, but if value is what you are looking for—it is worth the cost.

Family Floater : Under the umbrella of a single health insurance policy, you can now get your children and parents insured. Although such a policy does limit the scope of insurance cover compared to individual plans—it is cost effective and worth every rupee; till such time you can buy individual covers for all family members.

Critical Illness Cover:These come as riders that can be attached to a life insurance policy. These are also available as independent health insurance plans, which as the name suggest covers for critical illnesses listed in the policy. Given the quantum of cover offered – these cost very little.

Top Up Plans: Like mobile phone plans, you can increase the sum assured on your health insurance by adding a top-up to it.

Disease Specific Plan :Today, you have health policies focused on cancer care, dengue care and even diabetes, thereby increasing the scope of insurance cover pertaining to health.

Pre Existing Disease and OPD Coverage: After a defined lock-in period of 3-5 years (depending on the insurer), pre-existing diseases are also covered for by insurers. Likewise, certain policies offer limited OPD cover and also treatment by way of alternate medication— AYUSH.

Long Term Cover: Generally health and motor insurance come with an annual renewal of the policy. These days, policies come with a 2-3 year renewal option, making it convenient for policyholders who may otherwise forget renewing their policy.

Additional Motor Covers: You can take insurance cover specifically for your car engine, depreciation cover to ensure you donot pay for depreciation when making a claim and also include cover for consumables and electrical fittings.

Standard list of Exclusions: To avoid discrepancies, the insurance regulator, IRDAI, introduced a standard exclusion list, which clearly states all that is excluded from a policy, thereby reducing the scope for mis-interpretation by insurers when a policyholder raises a claim.

Lifelong Renewal: The introduction of lifelong policies under health insurers goes with the increased longevity, which in turn helps policyholders from the worries of not having an insurance cover when they need it the most – in their old age.

olmdesk@outlookindia.com