Generally, we are very cautious
while taking a loan or a life insurance policy to save those last minute
surprises. But most of us have a misconception about general insurance that
choosing a tailor made policy will take care of you and your belongings. Besides
the required coverage and sum insured, it is important to ensure that the final
policy document of a general insurance should comply with all the terms that
the agent / insurer has agreed with you.
A few things that should be cross
checked in a general
insurance in India policy
Personal Details-
In case of health insurance
policies even a misspelled name or a wrongly entered age can cause rejection of
a claim. For others, a full description of the property has to be given to the
financier. Commercial policies should have correct door numbers if the
insurance is for a building and correct serial numbers in case of machinery.
Vehicle Details-
Vehicle models or seating
capacity can be entered wrong if the software of the insurance company is not
updated with that particular vehicle model. If you have made any alterations in
the vehicle, like seating, LPG kit etc, check whether it has been entered in
your policy. Errors in registration numbers can also cause disputes when claims
arise.
Hypothecation-
If your belongings are hypothecated
to any bank or financial institution, the details of the same should be
mentioned in the policy. This is because in case if the property is lost, the
claim has to be settled against the financier and not to the insured.
Address-
The address of the insured to
which all communications in respect to the insurance contract should be sent is
important. There is a practice among agents to direct the communications of
their clients through them. It is better to make communications direct than routing
through agents, as there are chances of delay or failures in passing them on
the right time. For example, a renewal notice if not reached on time can put
you in trouble if a claim comes during the lapsed time or you can lose your No
Claim Bonus.
Period of Insurance-
Always check the date of issuance
of the policy. Delay can happen in policy issuance even if you had paid cash
for renewal to your agent. Always ensure that your policies are renewed at
least a day before the date of expiry. Because, in case if an event occurs even
in an hour's gap between policy expiry and renewal, the claim will not be
considered.
Sum Insured-
Ensure that correct estimate of
the assets are made, to avoid the risk of under insurance or over insurance.
For commercial policies, the average value of the products in your premises and
their possibilities of wear and tear should be mentioned. Don't ever compromise
on asset value for getting a lower premium. Cross checking the insured amount
and value of your assets on a regular basis is highly recommended.
Things Covered and Not Covered-
Insurance companies today sell
products in combinations as package policies, both pre underwritten and
underwritten after considering the needs of customers in different segments.
Ensure that your policy covers all your needs, considering all risk factors associated
with your product service or belongings.
Deductibles-
Always check if there are any
special conditions attached to the policy like loadings, voluntary / compulsory
excesses. For a bargaining customer, the agent / company would give the policy at
lesser rates compromising any of the mentioned. This could trouble you at the
time of making a claim.
Take time to go through the
underwriting guidelines to know about the coverage, extensions, riders,
omissions, voluntary / compulsory deductibles. These may vary from product to
product and company to company.
Third Party Insurance
The obligations of the insured in
relation to the subject matter of general
insurance in India to those who are associated with it in case of
occurrence of a claim are covered under the third party section of the policy.
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