Bajaj Capital Insurance recently conducted an online survey to understand consumer sentiments towards insurance as a protection product. The survey revealed that while the consumer now understands the importance of
protection, they are yet to realise the importance of adequate protection. Out of total respondents, 30 percent respondents from the age group of 30-45 years already had both term life and health insurance policy from Bajaj Capital.
However, out of those 30 percent, only 9.8 percent were adequately insured and the remaining were underinsured.
The financial firm polled 3500 insurance consumers across India. In the survey carried out amongst people in the age group between 30-55 years, 70 percent of respondents belonged to tier-1 cities while 30 percent were from tier-2 & 3 cities.
When asked about the factors influencing the insurance buying decision of the consumer, the survey found that in motor insurance, 42 percent chose ease of buying and 36 percent went with the number of benefits offered.
In health insurance, 45 percent consumers were adequately covered under the Individual Health Insurance while only 32 percent had a family floater health Insurance. However, only 8 percent of those with family floater policies were adequately insured.
The survey also found that 79 percent of consumers prefer buying or renewing their motor insurance digitally with the help of an expert.
Add-ons, such as super top-up, critical illness cover, and engine protection cover, are becoming popular among customers looking to enhance protection.
In terms of claims settlement preferences, 61 percent of respondents need physical assistance while filing a claim while 33 percent are okay with filing a claim online without any help.
Besides, the survey also revealed that there is still a significant portion of the population that is under-insured, particularly in tier-2 and tier-3 cities.
"80 percent of respondents from tier-2 and tier-3 cities did not have health insurance or life insurance plans, while the rest of the respondents had only basic coverage. This highlights the need for greater awareness and education about the importance of insurance as a protection product, particularly in tier-2 & tier-3 cities," said Sanjiv Bajaj, Jt. Chairman and MD, Bajaj Capital.
The survey reiterated the importance of solution based products. Over 52 percent of the respondents feel under-insured, despite most owning Health and life insurance, it said.
Additionally, the survey also revealed that 62 percent of the respondents want to increase their health Insurance coverage with Super Top-up and 28 percent want to port their policy for better features and comprehensive coverage, while, 42 percent of consumers who had Life Insurance wanted to enhance their coverage.
