Gurugram, Haryana:
A survey by the PolicyBazaar.com shows that India still buys insurance for "tax-saving" and "investment", however, the country is slowly recognizing that insurance means “protection".
Health Insurance
The overall trends with health insurance buying clearly depict how people are more aware of the importance of an adequate health cover and they are buying it for the right reasons.
A whopping 98 per cent of those surveyed purchased health insurance remains financial protection against medical expenses, even as 24% gave additional weightage to a combination of factors that include tax saving, personal events such as marriage, birth of child etc.
45 per cent of participants were convinced that the employer provided cover is not enough to adequately cover their health needs, even as a large percentage continues to be unsure or thinks that it's enough to protect them the lifetime.
Nearly 40 per cent of those surveyed consider Claim Settlement Ratio as the biggest pull for them to choose a health insurer, followed by the network of hospitals, brand name, and recommendation by family and friends.
Life Insurance
Even though majority of consumers are buying life insurance for creating a safety net for their families by ensuring financial protection, they were not necessarily aware as to how they can determine their correct sum assured size.
Nearly 6 out of 10 participants bought term life insurance for "financial protection", and around 38 per cent of participants bought the cover for a combination of reasons, that included financially securing themselves, their families and tax saving.
Most of the participants are not aware of how to choose the right life cover for themselves. The responses were fragmented, as 1/3rd of those surveyed believed that the sum assured should be in the range of 10-20 times of their annual income.
Motor Insurance
The insurance awareness trend w.r.t motor insurance indicates that consumers may not be totally aware of the nuances of motor insurance. Particularly in the case of the benefits offered from zero depreciation and third party liability cover.
Nearly 7 out of 10 motor insurance consumers bought insurance for twin reasons of motor insurance is mandatory for vehicle owners and also because it affords protection financial loss attributed to damage or theft of the vehicle. Whereas, 1/3rd of the respondents had bought motor insurance keeping third-party liability in mind. The survey also revealed that 6 out of 10 respondents were aware that lapsed motor insurance can be renewed online, while 4 out of 10 were not aware about it or unsure of the fact that lapsed insurance can be renewed online.
5 out of 10 consumers were found to be aware that third-party cover is mandatory by law. While a meager 4 per cent of the consumers responded that own damage cover is a mandatory requirement for car insurance, even though it is not. Whereas a whopping 45 per cent believed third-party and own damage cover to be mandatory.
On the occasion of National Insurance Awareness Day, PolicyBazaar.com at surveyed 5,600 existing insurance buyers to capture their attitude, perception, and behaviour towards insurance.