Buying insurance is easy.
Understanding what you bought? That’s where most people get stuck.

Let’s be honest — insurance policies can feel like they’re written in another language. Long documents, technical terms, fine print… it’s no wonder many people only realize what’s covered (or not) after a claim is rejected.

But don’t worry. You don’t need a law degree or a magnifying glass.
You just need to know what to look for.

Here’s a simple step-by-step guide to reading an insurance policy — whether it’s for health, life, motor, or travel insurance.

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🗂️ 1. Start with the Policy Schedule (Your Summary Page)

This is the most important page in the whole document. Think of it as your personal insurance dashboard.

It includes:

• Your name and policy number

• Sum insured (the amount of coverage)

• Policy period (start and end date)

• Premium paid

• Type of plan (individual/family floater, term plan, etc.)

• Nominee details (who gets the benefit)

✅ Tip: Save a soft copy of this page. It’s the first thing you’ll need during a claim.

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🔍 2. Understand What’s Covered

Now look for the “inclusions” section. This explains what the insurance will pay for.

For Health Insurance:

• Hospitalization (minimum 24 hours)

• Daycare procedures (like cataract surgery)

• Pre- and post-hospitalization (usually 30/60 or 60/90 days)

• Ambulance charges

• Maternity cover (if applicable)

For Life Insurance:

• Term life: Payout on death

• Endowment/ULIP: Death + maturity benefit

For Motor Insurance:

• Own damage (your car)

• Third-party liability (others’ injuries or damage)

• Add-ons: Zero depreciation, engine protect, roadside assistance

✅ Tip: If it’s not listed in the “inclusions,” it’s probably not covered.

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🚫 3. Know What’s Not Covered (Exclusions)

This is where most people get surprised.
Check the “exclusions” section carefully. It lists what the insurer won’t cover.

Common exclusions:

• Pre-existing diseases (for a waiting period)

• Cosmetic surgery

• Non-allopathic treatments (unless listed)

• Injuries from self-harm or intoxication

• War, nuclear events, or participation in hazardous activities

✅ Tip: Look for “Permanent exclusions” vs “Temporary exclusions” (like waiting periods).

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⏳ 4. Check the Waiting Periods

Most policies have a waiting period before certain conditions are covered. For example:

• 30 days for general illness

• 1–2 years for cataracts, hernia, joint replacements

• 2–4 years for pre-existing diseases

✅ Tip: The shorter the waiting period, the better the policy. Always ask before you buy.

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💸 5. Understand the Claim Process

This section explains how to claim the benefits of your policy.

Key points:

• Cashless claim: Network hospitals/garages where you don’t pay upfront

• Reimbursement claim: You pay first, insurer reimburses later

• Claim documents required (bills, reports, discharge summary)

• Claim timelines (submission within 7–30 days)

✅ Tip: Save the TPA (Third Party Administrator) or insurer’s helpline number. You’ll need it during emergencies.

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💰 6. Look for Sub-Limits & Co-pay Clauses

Sub-limits = caps on how much the insurer will pay for certain things.
Co-pay = you pay a % of the bill, even if covered.

Examples:

• Room rent limit: ₹3,000 per day

• Cataract surgery: ₹25,000 max per eye

• Co-pay: 20% of hospital bill

✅ Tip: Policies with no sub-limits and no co-pay are usually better (and slightly more expensive — but worth it).

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📋 7. Read the Definitions & Glossary

Confused by words like “deductible,” “endorsement,” or “maturity benefit”?

Go to the glossary section at the end of the policy. It defines every key term.

✅ Tip: If you don’t understand something, ask your insurer or advisor. There are no dumb questions when it comes to your financial protection.

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🧠 Final Thought: Don’t Just Buy Insurance — Understand It

Your policy document is not just a formality. It’s a contract that protects your health, your income, your vehicle, and your future.

Take 15–20 minutes to read through it — or use this guide as a checklist.
It might save you time, money, and frustration when you need help the most.