Subscribing an insurance plan comes as a part of the financial planning. Insurance plans help to avoid unnecessary financial burden in case of any health emergency and provide a financial security to family in case of unfortunate death of a person. However, things are not convenient for everyone as many policyholders often encounter a number of challenges while dealing with insurance companies.

There are a number of instances when people run into problems with their insurance companies. Some of these issues are related to their policies, renewals, claim process, nominations, contacts, and payment delays among others. A section of policyholders might also face issues regarding emergency reimbursements or rejection of their policy claims. While thorough research helps to find the best health policy in the market, there are a few factors that can make the insurer's best buy a troublesome affair to continue with.

Problems that policyholders face in India

1. Delays in claim settlement: One of the most common problems faced by policyholders is regarding the delay in claim settlements. There are times when insurance companies take a lot of time to process the claims and settlement, which often causes inconvenience and financial stress for policyholders.

To address the same, policyholders must maintain proper documentation and submit all of these to the insurance companies. This will help to ensure the progress of their claims.

2. Miscommunication regarding coverage: Policyholders often find the amount of their insurance coverage insufficient, especially at the time of a claim. This is basically due to a miscommunication regarding the policy terms, exclusions and limitations.

To avoid such issues, policyholders need to review their policies thoroughly and read all the terms and conditions when buying the plan.

3. Unfair terms and conditions: Policyholders often overlook the minute terms and conditions while signing the policy documents. As a result of this, they may face clauses or conditions leading to misunderstandings and disputes at the time of filing claims.

Policyholders should go through all the details of their policy and identify any sort of unfair or ambiguous terms. In case of doubts, they must seek clarification from the agents or insurance companies. They can also file a complaint if their grievances are not solved.

4. Unsatisfactory service: Poor customer service is an issue that is faced by people across all industries and it seems that insurance companies are also no exception. From facing challenges in contacting their insurance providers to lengthy formalities, these take a lot of toll on the policyholders.

To solve such problems, policyholders need to keep a record of all communication details in regard to their insurance companies. In case of poor service, they can raise complaints with the higher authorities and seek a resolution.

5. Non-disclosure of important information: Providing all the material facts is very important for policyholders as they come of use at the time of filing claims. Non-disclosure of such details may result in certain gaps in the policy and hus affect the claim process.