General Insurance Is A Matter Not To Be Overlooked

People officially tend to take the last minute decision while getting general insurance. However, it is advisable to buy general insurance only after taking prudent measures.

People officially tend to take the last minute decision while getting general insurance. However, it is advisable to buy general insurance only after taking prudent measures.

Many people may have a misconception in terms of general insurance purchase. It is not that once you get a tailor made general insurance policy, it will procure all aspects of you as well as your belongings. You need to ensure that your required coverage and the sum insured to be received is enough. Also it is crucial to ensure the final policy documents of your general insurance plan complies with all terms agreed by the agent or the insurer.

Further are certain key things you must cross check in a general insurance policy.

Personal information

In terms of general insurance plans like health insurance, a misspelled name or wrongly entered age/year can be a reason for rejection of your claim. For other types of policies, the insurer must receive a complete description of the buyer’s whereabouts.

Commercial policies must contain correct door numbers. For example, if the insurance plan is concerned for a building then it should contain correct serial numbers 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 you hypothecate your belongings to a certain bank or any financial institution, your policy must contain the details of the same. It’s because when the property is found to be lost, the claim will be settled against your financier and not you (the insured).

Insured’s address

The insured’s address is the one where all communications related to insurance contract will be sent. Hence, it is important. It’s better to make the communications direct rather than steering it through agents. The latter poses a threat of delay or failures while passing the information to be reached at the right time to the insured.

Period of Insurance

Always check the policy’s date of issuance. The delay can happen during policy issuance even if a person makes payment for renewal to the agent. Always make sure that your policies get renewed before the termination date. This is important considering that if an event arises even during an hour's gap, the claim will be rejected.

Concluding points

It is crucial that you correctly estimate the assets needed to be insured. This is vital if you want to avoid risk of under or over insurance.

In terms of commercial policies, you need to consider average value of products placed in your premises. Also you should consider the possibilities of their wear and tear.

Do not compromise on the asset value just to get a lower premium.

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