One burning issue in the mind of a average person, especially in this part of the world when it comes to insurance products purchase is: “Will the insurance company pay me when I have a claim?” This question is as old as insurance itself. I recall instances when I have to talk with people about insurance and the need to insure, the response I get from some of them is the same as above. Many have tagged insurance companies as fraudsters! This article is written to correct this notion and hopefully clear all doubts off your minds.
I am going to take 5 reasons in this part and conclude with the remaining 5 reasons in the second part.
The following are the first 5 reasons why your claim will not be settled:
1. Unpaid/Unremitted premium
2. Fraudulent Claim
3. Incomplete Documentation
4. Insurable Interest Issues
5. Fake Insurance Cover
Unpaid / Unremitted Premium: according to the principle of insurance which is also true in the principle of contracts, premium (which is consideration in the law of contract) must be paid in advance for the contract of insurance to be valid. This is the most important aspect of an insurance cover, without which there is no cover – NO PREMIUM, NO COVER! At times agents, after taking up a policy on someone’s behalf might fail to remit the premium to the insurance company before a loss. However, when such a loss thus occurs, the first thing the insurance company will check is the premium status of the policy. If the premium had been settled before the claim, the claim stands a high chance of being paid all other things being equal. However, if the premium was not paid before the loss, repudiation (rejection, refusal…) is the remedy. How do I avoid this? You may ask, I’ll tell you; to avoid finding yourself in this kind of embarrassing situation, pay your premium immediately you purchase the policy or pay a deposit premium in case of installmental payment instantly and followed by the balance payment. Not only that, if you bought the policy through an agent, be deliberate, issue your premium cheque in the name of the insurance company on your insurance paper and not the agent’s name.
To be concluded…
see http://johnny2008-insurance.blogspot.com/
