Curling up with a good book on a weekend, does the idea fascinate you? Don’t you think you should read something else before that? Yes folks, you should be reading your insurance policy, the various covers and exclusions associated with it for understanding insurance and the need of insurance.
What is insurance policy?
An insurance policy is a legally binding contract between your insurance company and you. A contract is basically the terms and conditions of an insurance policy which are mutually agreed upon by the insurer and insured.
Points To Be Considered While Reading Your Insurance Policy:
- Policy Declarations
The insurance policy declaration page is the first and a very important page of the policy. Insured’s details and the coverage and the time period for the cover are specified on it.
2.Insurance Definitions
This section shells out definitions of all the words and phrases present in the insurance policy. This enables the insured to understand the terms he is unaware of.
3. Insurance Policy Coverage
his section gives you a list of things which are covered under a policy. It also provides some additional benefits for the insured. For example, a particular car insurance policy may provide you with personal liability along with roadside assistance, making the customer feel valued and secured.
4. Insurance Policy Exclusions
Policy exclusions include a list of things which are not covered in the insurance policy. However, some of the exclusions can be covered by the insurer on paying extra premium. For example, flood coverage maybe excluded for people living in an area where floods are unlikely to happen. However, if the insured wishes to have an additional flood cover, he can opt for it by paying extra.
5. Insurance Conditions
This part highlights the responsibilities of both the insured and the insurer. Pointers like cancellations of policies, subrogation and payment plans are highlighted.
6. Duties After a Loss
This part guides the insured in case of a loss. It includes responsibilities like informing the insurer as soon as possible in case of a loss, notifying the police whenever required and protecting yourself and your property from potential losses so that you can request for an insurance claim under your policy. It is very important to read through and understand your insurance policy and it is equally important to use a trusted broker or insurer to assist you in obtaining the b