SOMETIMES INSURANCE DOESN’T WORK!
It is a Sunday morning and you and your family have your seat belts on, listening to background music as you drive down the Naivasha Nairobi highway. There is poor visibility as you overtake a slow-moving truck. Suddenly you notice an oncoming vehicle speeding down towards you, before you can even sway your car you hear a loud crash and everything goes dark and quiet.
You wake up in a hospital bed two days later and you are in excruciating pain. The doctor walks you through your injuries. It will be a miracle if you were able to walk again. This could be your story. What do you do? Can you pay your hospital bills? How do you support yourself and your family financially while you come to terms with your disability and learn a new skill?
To Insure or Not to Insure?
For most people Insurance seems a scam. You pay out large premiums that you may or may not claim. Insurance is an intangible product. It’s not a chair that you buy and sit on or a cow that gives you milk. It’s there just in case.
You cannot predict catastrophes. You don’t know when you will be in an accident, when your child will get that devastating diagnosis, or when those thieves will clear out your personal belongings from your home or business.
Most people play Russian Roulette with risk. We hope that it won’t happen to us or that if it does we will have money in hand to take care of it. The harsh reality though is that when something does happen you rarely have enough to cover the costs and healthcare costs especially can quickly spiral out of control.
Insurance is a safety net for when things go wrong. It provides another intangible effect in your life, peace of mind. When you buy an insurance product, you buy a promise that if something goes wrong in your business, your health or with your car the insurance will help you right the situation and manage the financial implications.
Does Insurance Not Work?
For the most part Insurance works. However, there are times when Insurance doesn’t work.
- WHEN DEALING WITH A DISREPUTABLE BROKER.
In most cases we access our insurance products through insurance brokers. If the broker’s focus is not on you as the customer and your needs and perceived risks, you might find yourself in a situation where when claiming if something goes wrong, you find that the Insurance company won’t pay up because of the terms of your policy.
Most Insurance brokers see insurance as a ‘commodity’ when in fact it is anything but (it is more appropriately described as a ‘tailored promise’!). A good broker will ensure that they understand your needs and risks and help tailor a policy that will cover you effectively.
- WHEN YOU HAVEN’T READ AND UNDERSTOOD THE FINE PRINT
All Insurance policies have fine print. These are rules and exceptions that cover the terms of the of the policies. While people might see insurance fine print as a way for Insurance companies to wriggle out of paying claims, the practice of fine print in Insurance policies does have valid reasons for its existence.
Many of these conditions present in fine print are introduced with the intent of protecting society (e.g. A policy exclusion may be not to cover a loss arising where the insured client broke the law).
Be sure to understand your level of risk and the requirements from the Insurer before investing in a policy. Having a reputable broker is important when you are looking for an insurance cover. There are multiple benefits to insurance and it works.
Keep on the lookout for more Insurance tips from us. Have an Insured week!