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Rebranding: Going into an insurance contract, avoid ignorance

by MODESTUS ANAESORONYE

June 12, 2018 | 4:30 pm
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Insurance like any other contract is binding on affected parties, that is the insurer (insurance company) and the insured (policy holder), that each must keep their own side of the contract, to have a successful risk transfer and risk management.

While the insurance company has the responsibility to ensure that it is there to pay the insured claims when they arise, the insured on his own must do certain things that will make the contract valid within the cover period.

The insured must be open and give all information requested by the insured without hiding any material fact; must pay premiums as and when due without creating room for argument, and also report loss at appropriate time.

This implies that the insured must read the insurance policy document and understand it properly before going into the contract. Insurance does not accommodate ignorance as an excuse for not playing your own role.

If you cannot read the policy document and understand it, get an insurance broker who is an intermediary between you are the insurance company.

The broker does not charge you any extra money outside the premium for the insurance contract, which is paid to the insurance company, so do not be afraid of extra cost. A broker is paid by the insurance company, and does not affect the premium on the policy.

With the broker, you can be sure that you are not going to run into problems of ignorance, as long as you follow the broker’s professional advice.

Insurance more than a number of these other investments, is technical in nature requiring that somebody going into it understand the secrets for effective insurance. Otherwise, use the broker because ignorance is not an excuse in law and worst is when someone has made loss, and there is a claim.

To avoid all of these cork and bull stories, take the services of an insurance brokers who by virtue of their profession understand the deal and can mediate for you to undertake an insurance cover successfully.

Just like an accountant or lawyer who provides you with professional advice based on years of training and experience, a qualified broker can do the same with your insurance.

One interesting thing about using the services of a broker is the fact that, you the insured is not going to pay the broker for his services, but is paid by the underwriting company that gets the business, experts say.

Like the experts put it, when arranging insurance, many people take shortcuts without seeking proper advice, understanding the fine print or considering whether they are getting value for money.  Often they end up with cover they don’t need and – even worse – without the cover they really need.

A broker will be aware of the benefits, exclusions and costs of competing policies on the market.  They will also help arrange and place cover and can often provide advice on how to make the most of your insurance budget.

Without having an insurance protection one is not only exposing himself to avoidable risks, but also exposing those who rely on him or her for their daily needs and upkeep.

Like an expert said- it is a moral irresponsibility not to provide for your family when you will not be there. It further stated that this is where insurance has an edge against other financial plans.

The primary reason that you need to buy insurance is to transfer risk. Insurance allows you to transfer financial risks from yourself to an insurance company. The insurance companies prepare for this risk because they charge premiums to their customers and keep a large amount of money in reserve. When a customer files a claim, the insurance company has the money there to pay it. This allows you to focus on other things instead of worrying about possible losses.

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by MODESTUS ANAESORONYE

June 12, 2018 | 4:30 pm
12893  |   93   |   0  |   Start Conversation

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