What you need to know about insurance

insurance policy form on desk in office showing risk concept

Wrong decisions and choices when arranging insurance cover can result in a financially crippling experience for any policy holder should an unforeseen and unexpected loss occur.

This article – the first in a weekly series of articles to be published – will guide readers through various insurance traps and ensure that they receive what they are paying for.

Make sure to read every weekly article that can also save as your personal guide to insurance. What you need to know to protect your interests will, based on the 60 years experience of the writer, be revealed to you.

In the weekly articles which will follow after the publication of this first article, readers will obtain the answers on questions such as the following:

What is insurance? What is the difference between short term insurance and long term assurance? What is the difference between insurance and other commercial contracts? Who may obtain insurance? Can you insure for any amount? Can you recover a loss from more than source? How do you determine your correct insurance need? and How to go about arranging for your insurance requirement?

Readers will also be getting to understand the content of your insurance policy.

What are your obligations to your insurer and what are their obligations to you?

Understanding correct claims procedure and knowing what to avoid when dealing with a claim.

As it appears to be the root cause of many insurance claims being rejected by insurance companies it is of utmost importance that you fully understand and appreciate the importance of the method by which you decide to arrange your insurance cover.

There are basically two routes that an applicant for insurance can follow in getting his/her insurance placed with the insurer of their choice.

These comprise of one of the following choices:

Personal placing of your business insurance with the Insurance Company of your choice or appointing an Insurance Intermediary (Brokers/Agents/Consultants) to arrange your cover with an Insurer.

Be cautious of the “easy, instant and simplified method” of finalising an application for insurance via telephone recording. These are the so-called “Paperless Insurers”. Will you be provided with a transcript of such recording along with the policy of insurance you receive? If not, what proof will you have of the information you provided to such an insurer should there be a subsequent claim dispute?

Your minimum requirement, should you decide to follow this method of arranging your insurance, is to insist that you receive written confirmation from the insurer guaranteeing that such recording will be made available to you in the event of a dispute arising. This written confirmation should be provided to you along with the official policy of insurance and should be incorporated as the basis of the contract. The transcript of the recording should also be made available to you FREE of any charge as with normal paper transactions you are entitled to make a photostat copy for your own records. The author would doubt the integrity of a non-obliging insurer, and so should you. Preference should then be for an insurer prepared to comply with this minimum requirement.

In the further articles to be published much more will be disclosed on the alternative methods for arranging insurance cover. Be on the lookout for this as it is vital to your financial security. For now… BEWARE OF PAPERLESS INSURANCE TRANSACTIONS! www.solutioncentre.co.za