14/06/2020
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The Complete Guide to General Insurance In Bangladesh: 7 Things You Need To Know
In Bangladesh, there are a lot of confusions and misconceptions regarding General Insurance. And, there are very few resources to understand General Insurance clearly and effectively. So, in this blog we have tried to capture all the basics you need to know about General Insurance in Bangladesh. This can be your go to guide in selecting the right insurance, evaluating premiums, and understanding the claiming process. In short this guide will be your go-to-guide for all things general insurance.
So, here are the 7 things you need to know about, before buying a general insurance in Bangladesh:
1. What is General Insurance?
Imagine you own a beautiful car. You spent BDT 30 lacs of your savings to purchase the car last year. Unfortunately, all of a sudden, the car gets stolen. What do you do? If your car had insurance, the insurance company will cover the financial loss you suffered due to the theft.
You can get reimbursed under the insurance policy because it was ensured. But please note: an insurance policy will pay only as per its predefined conditions.Like this, under general insurance, you can protect other tangible/physical assets like motorbikes, autos, buses, trucks, commercial vehicles, etc, against any kind of unexpected accident, damage, or loss.
Compare the Best General Insurance Deals Here will open popup for choosing General Insurance category
Broadly speaking insurance can be of 2 types: 1) Life Insurance & 2)General insurance (or non-life insurance). So, in short General Insurance is a non-life insurance where the insurer (e.g.: any insurance company) takes the liability of assets covered as such it will pay for the losses that may occur during the policy period, in exchange for a price called a premium.
Common Types of General Insurances in Bangladesh:
You can know more about the types of General Insurances at this link can lead out to separate blog in future
2. No alternative to doing your own research:
So, now that we know what general insurance is, comes the next question: how do we know which company or scheme will be best for me? If you are someone looking for insurance, chances are Insurance Agents are flocking outside your door to convince you how their deal is the best deal & sell you their scheme. But, bear in mind Insurance Agents are often under sales target and they might exaggerate and sometimes hide details to sell you their schemes. So, the best way to decide is to look and compare for yourself. Please do your own research.
There are so many insurance companies out there. Don’t just blindly trust anyone just because they claim themselves to be the best. Do your research, compare different policies/companies and see which one works for you.
And to make this process easy we at Nirapod Bima have aggregated almost all the major General Insurance deals in our platform so that you can check & compare and choose the actual best deals:
Compare the Major General Insurance Deals Here & Decide for Yourself will open popup for choosing category
3. How to choose the right insurance company
So here comes the next question: OK, I am doing my own research but how do I decide which company or deal will be best for me? For making the comparison easier we are highlighting 9 things you can look at while choosing the right company or deal:
- Reputation of the company
- Current financial condition of the company
- Customer service
- Authorization & compliance
- Premium
- Coverage
- Full Disclosure & Transparency in Policies
- Discount
- Claims Payment
Get our “Ultimate Guide to choosing the right Insurance Company” (Will lead to a lead capture / sign up form: Sign Up for our Newsletter & we will directly send the guide to your mail)
4. Read the policies and conditions carefully:
Insurance policies can be a little tedious but it is also one of the most important parts of the insurance process. There is no way to avoid reading the details carefully, because you might overlook one or two points that can be crucial in the long run.
Here are the reasons why you should carefully read the insurance policy:
- To identify what specifically the company/scheme is providing and whether it serves your personal objective. Make sure it covers what you need and expect it to cover.
- If there are special reporting provisions or requirements that apply after your entity faces a loss, you want to make sure that you are aware of what needs to be done, and when it must be done.
- The declaration (usually the first page) page is a good way of reviewing the main important information in summary. This should include:
- name or type of the coverage provided under the policy
- name of you/your organization, and an indication that it is the “Named Insured,” or the subject of the coverage
- duration of the policy
- names or numbers of endorsements that are included in the policy
- monetary limits of coverage and associated deductible
If you don’t understand anything please make sure to clarify it with your insurance company.
5. Understand premium and coverage: Be clear about what your insurance company will and will not cover
Insurance Premium: is the amount you pay an insurer for insurance cover.
In Bangladesh, the price of the premium may be decided depending on a variety of factors including:
- Type of coverage
- Amount of coverage. (the less the coverage, the cheaper the premiums – this is more or less an universal rule)
- Your personal information (your age, credit history, gender, marital status, health, job, where you live etc.)
- Your previous claims history
- Risk level for your specific circumstances or demographics
Depending on the insurance policy, you might pay the premium each month or on a semi-annual basis. In some cases, you might be required to pay the full amount upfront, before coverage starts.
Please note, failure to pay the premium on the part of the individual or the business may result in the cancellation of the policy and a loss of coverage.
Please be clear that, not everyone’s risk will be the same.
An insurer will charge a higher premium when the risk of accident, loss, theft or catastrophe is greater.
Because of this, insurance premiums will vary from person to person, and no, two insurers offer the same premium or policy with the same terms and conditions, and this can make comparing policies very important. At Nirapodbima.com we have almost all the major insurance deals listed so that you can compare and decide for yourself. Compare premiums, compare policies and choose the best offer that serves your objective.
Compare the Best General Insurance Deals of Bangladesh Here & Decide for Yourself
For coverages also make sure the terms and policies are suited to your objective, there are plenty of options at Nirapodbima.com, so compare and choose wisely without the influence of misleading insurance agents.
6. Claiming process:
Here the general steps of the claiming process:
- Contact with your broker:
Since, your broker is your primary point of contact for insurance policies, so you should immediately contact your broker when any sort of claim-worthy situation occurs. You should give your broker a detailed list of all the items lost or damaged, and any proof like a photo or video that showcases the circumstances. Next, an adjuster will follow up to progress the claims process.
After the claim has been reported, an investigation process will need to take place to identify the amount of loss or damage covered by the insurance policy. The adjuster will also try to identify any liable parties, so you can help the process by providing any relevant information or contact details of witnesses or other relevant people.
After the investigation is complete, the adjuster will evaluate your policy to find out what is covered by the policy. Once the evaluation is done you will be informed about any deductibles applicable.
In the next step the accurate extent of your damage will be evaluated by the adjuster, for this the adjuster may hire experts, engineers, contractors. Your adjuster might also provide you with a list of suitable vendors for the repair works. It is not mandatory for you to work with these vendors but it might be useful in a lot of cases as it might save you valuable time and money.
After all of these are done, and your lost goods are restored or damaged items are repaired, your adjuster will coordinate with you regarding your payment amount, and clear out the claim amount. The clearance of this payment may vary from case to case and depends on the complexity or severity of your case. This also depends from company to company.
Get our exclusive tips on “How To Efficiently Claim For Your Insurance” (Will lead to a contact collection form. A short document containing tips will be mailed on the collected mailing address)
7. Renewal policy
Insurance renewal is when you decide to continue an insurance policy. Your insurance renewal may include an increase in your rate, depending on the type of policy.
- When does an insurance policy renew?
It is based on the date your policy took effect and the length of your policy period. Policies usually renew annually or semi-annually.
- What to do when your insurance renews?
Your renewal is a good time to review your current policy and to make changes to elements like: coverage.
It is the perfect time to contact your insurance company to review your policy. You may try to make changes to your coverage if your situation has changed. You may want to opt for another policy if you’re not happy with your rates or service.
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