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3 Things Your Insurance Agent is Not Telling You!

Team AckoFeb 27, 2024

For anyone new to insurance, a lot of things absolutely do not make sense. This is where they tend to rely on an insurance agent to get the best insurance policy.

Here are 3 things your insurance agent may not be telling you.

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Contents

1.The IRDAI is always watching:
2. There are only 2 vehicle insurance policies:
3. The best plan may not be the best plan (Your agent’s advice may be biased):

1.The IRDAI is always watching:

While you’re given the liberty to choose from a platter of insurance companies, what your agent doesn’t tell you is that, there are not any major coverage differences between any individual plan, from any insurance company. This is because the insurance industry is heavily regulated by the Insurance Regulatory and Development Authority of India (IRDAI), which provides licensing to insurance companies. All insurance companies including ACKO, fall under the jurisdiction of the IRDAI. This basically ensures that there is no foul play, and all terms and conditions of policies are fair for the end consumer.

2. There are only 2 vehicle insurance policies:

Vehicle insurance plans mostly fall under these three categories:

Third Party Plancovers damages to the third-party (property/life) caused by your vehicle. It is mandatory to get this insurance and the price is mandated by the government depending on the specifications of the vehicle. Failing to have a valid third-party insurance is a punishable offence, and you will be fined up to Rs. 4000.
Comprehensive insurance (Third Party + Own Damage) is an extensive plan to insure your vehicle in case of unfortunate incidents such as accident, theft, fire, explosion, or natural calamities. The comprehensive plan also covers third-party liabilities as well.

Do remember that your claim amount will be calculated along with the current rate of depreciation, which is determined by the IRDAI. If you want to protect your car from depreciation related claim loss, then a Zero-Depreciation add-on ensures that depreciation is not charged during claim settlement. This simply means that in case of accidental damages, you can claim the total cost of replacement of car parts. The depreciation value of the damaged parts won't be deducted from the claim amount.

3. The best plan may not be the best plan (Your agent’s advice may be biased):

Agents and brokers make money via commissions. Naturally, they tend to push policies that provide the max commission to them, as their commissions are included in the premium that you pay each year. Make a wise decision and buy insurance from companies which sell directly to the customer. Insurtech companies like ACKO avoid middlemen, and directly deal with their customers. Hence, there is zero commission involved, which means lower premiums for you.

A smart way to zero down on a policy that would best suit your needs is to check the following:

Check the premium.
Claim settlement experience: Like ACKO’s Instant claims settlement, if the claim amount is under Rs. 20,000.
Additional coverages provided on your base plan.

Now that we’ve spilled the beans, skip that appointment with your agent, and make a policy purchase based on your needs.

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