Friday, March 02, 2007
posted by PabloPabla at 12:03 pm

I used to work in an insurance company and there is a bewildering number of insurance coverages available in the market ranging from life insurance policies to auto insurance policies to houseowners policies. Now that I am working as a lawyer, I also deal with insurance policies as some of my clients are insurance companies.

Based on my experiences so far, I find that many people are ignorant about the types of insurance policies available as well as what kind of perils these policies cover. More often than not, misunderstanding occurs and an unpleasant claims episode surfaces resulting in litigation. For instance, in auto insurance, there are two types (comprehensive and third party) of cover available where the latter is the minimum requirement under the law. Even so, the very basic coverage does not cover any injuries to the passengers in the vehicle unless an additional premium is paid. Assuming the windscreen is broken due to impact damage (independent of any other damage to the vehicle), a claim preferred on the policy (only comprehensive cover will afford the coverage) will result in a loss of No Claims Bonus (NCB) unless a separate windscreen cover is bought for an additional premium.

It is thus imperative that purchasers of insurance policies take time to ask as many questions from their agent and if possible, get the agent to explain each and every term and condition present in the policy so as to familiarise themselves with what kind of coverage they are buying. Some insurance portals provide quotations and these are useful starters to begin with.

This is a sponsored post and my advise is genuine!