Understanding your insurance poli...

Knowing the ins and outs of your insurance policy is incredibly important. This includes understanding the terms, conditions, and any exclusions it may have. If you''re not clear on these details, it could lead to disappointment when you need to make a claim.

Having a clear understanding of your insurance policy can prevent confusion and misunderstandings about what risks it covers. So, take the time to familiarise yourself with your cover to ensure you''re fully informed and prepared for any unexpected situations.

It is important to look into some of the obligations you have as the insured across the different product categories most insurers offer. And again, this only highlights certain aspects and does not constitute as final or only obligations to consider as products are underwritten differently from insurer to insurer, therefore, you still need to acquaint yourself with the general terms of the policy you may be interested in taking up.

Before we can discuss the different obligations across the different product categories, it is important to firstly understand what we mean by “Obligations”. According to the Thesaurus dictionary, an obligation can be defined as something by which a person is bound or obliged to do and these normally arise out of a sense of duty or results from law which is the regulatory body in this case (dictionary.com).

Car Insurance Obligations

Vehicle Inspection

On short term insurance products, car insurance is one of the most common covers that most clients take out. But for a customer to be fully covered, insurers would normally require that the vehicle is fully inspected either online or from one of the appointed inspection stations by the company. The purpose of doing an inspection is to verify the existence of the insured item as well as the condition it was in when the cover commenced. This helps eliminate payouts for items which may not exist whilst also ensuring that existing damages prior to cover commencing become the responsibility of the customer.

Vehicle tracking device

One other obligation under vehicle insurance cover, specifically cars that have a high theft ratio, is that a tracking fitment would be required and the aim for this is to be able to track the vehicle in the event of it being stolen.

Home Contents Insurance Obligations

Security measures

Most insurers who offer Home Contents Insurance would require that the insured has certain security measures in place for the sake of mitigating risk. Home Contents cover speaks to cover of the items in your home including but not limited to: home appliances, jewelry pieces, furniture pieces etc. The one obligation which most insurers would have for the these include having burglar bars on the opening windows, installing an alarm system as well as having sufficient barricades around your property. Failure to having some of these in place could result in the insured’s claims being repudiated.

Building Insurance Obligations

The concept of Building Insurance is to cover the shell or the structure of the property against accidental damage resulting from fires, natural disasters as well as malicious damages. The cover includes perimeter wall all the way the structure. The underwriting criteria is reliant on the type of material used to construct the property. Some properties have a thatch roof which heightens their risk of claim resulting from fires and lightning damages, and as such, most insurers would impose conditional exclusions. For example, most insurers would require that all clients insured who have a thatch roof fit a lightning conductor to reduce the risk of lightning damage, failure to comply would result in cover not being provided against lightning damages making it an exclusion, whereas if the conditions are met, the insured gets to enjoy full cover.

Life insurance Obligations

Many of us fear that day when we have to part ways with our loved ones when our time to finally leave this world comes. That alone is enough motivation to consider products like life insurance which can help your family after your departure to take care of whatever needs they have.

To guarantee peace of mind and a smooth claims process for your beneficiaries, it''s essential to understand and meet certain obligations set by the insurer. Typically, insurers request a list of beneficiaries and their allocated shares of the inheritance funds at the policy''s onset. It''s the insured''s responsibility to keep this information up to date. If any changes occur, such as a beneficiary''s circumstances altering, it''s crucial to communicate these changes to the insurer. Otherwise, the listed beneficiaries from the last agreement will be followed, potentially leading to unintended outcomes.

Other obligations which the insured has is to garnish true and accurate information about their personal details such as marital status, residential address for quick tracking in the event of a claim arising.

In conclusion, understanding the obligations of the insured is crucial for maintaining an insurance policy. Remember, your responsibilities include providing accurate information, paying premiums on time, and notifying your insurer of any changes or claims promptly. By fulfilling these obligations, you ensure reliable cover for when you need it most.

Key takeaways:

1. Accuracy is essential: Provide correct information to your insurer.
2. Timeliness matters: Pay premiums on time to avoid lapses in coverage.
3. Communication is key: Notify your insurer promptly of any changes or claims.

Next steps:

1. Review your current insurance policy to ensure you understand your obligations. 
2. Keep your insurer informed of any relevant changes in your circumstances.
3. Regularly assess your cover needs and update your policy accordingly.
4. Reach out to your insurer for any clarification or assistance regarding your obligations as an insured individual.