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Read and understand your insurance policy document

By ROSEMARY ONUOHA

In Nigeria, insurance has never been a popular buy. A common answer being given by the average Nigerians on why he will not buy insurance has always been “Insurance don’t pay claims.”

However, insurance is changing for the better. The negative perception that has plagued insurance all along is changing for the better because practitioners have seen the need for change and are embracing it.

Despite the fact that insurance is changing, the buying public on the other hand must understand the terms of the contract they are entering with their insurers so that when there is need for a claim, it will be promptly settled. A lot of times people don’t understand the terms of the insurance contract they are carrying. They believe that once a contract has been entered into, the claim must be settled when the need arises.

Unfortunately, insurance does not work like that. Insurance works strictly in accordance with what is contained in the policy document. That is why it is advisable that people should read the terms of the policy thoroughly before entering into any contract.

According to insurance experts, members of the public should always read their insurance policy documents because policy documents are now written in plain language. Accordingly, the era when policy documents are written in Shakespearean English is long gone as insurers have made the language of the policies they sell user friendly so that insurance buyers can ask questions where necessary before taking their final decisions.

Why you should read your policy documents well

Insurance in the simplest term means you pay a lump sum known as premium, to get a leverage or protection against an accident or loss of a large or small magnitude. So, when the misfortune is encountered, the insurance company can step in, helping you out to sail through the dirt.

It is therefore pertinent that a client should understand how the product or service which he is paying for works, before committing his/her premium. Insurance means you do not have to be on the streets, if somehow the main family bread earner passes away, or the roof over your head is snatched or your life savings are stolen. In all these cases, a good insurance is your road to quick recovery.

The greatest asset insurance bestows is the absolute peace in case of most traumatic moments of ones life. Hence in order not to be deprived of this peace, you must know what your insurance contract covers and what it does not.

A dying man, who is insured for life, would breath his/her last in complete peace, knowing he/she can pass away without fretting over the financial state of his/her family. In automobile accident, you do not lay down in a panic attack, if the vehicle is properly insured. Hence it would be justifiable to claim that insurance brings an extra strength to face the worst upsets of life.

However, there are times when you can be in need     of insurance cover but ended up confused on what type of insurance to take. In cases like this, it becomes important to engage the services of an insurance broker.

Insurance brokers act as intermediaries between clients and insurance companies. Clients may be either individuals or commercial businesses and organisations. Brokers use their in-depth knowledge of risks and the insurance market to find and arrange suitable insurance policies and arrange cover. They act in the interest of their clients and offer products from more than one insurer to ensure that their clients get the best deal.

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.