INSURANCE FINE PRINT SCAM OR NOT?
Unfortunately for many the idea of having a chat with an insurance agent leaves a bad taste in their mouth. This is because many people perceive insurance to be complex and full of exemptions often hidden in the fine print. And with such a perception, they wonder why they should take up an insurance policy. It is true that there are very valid reasons as to why the insurance industry in the past has deserved some of the criticism it has received. This is largely due to: -
1. Miscommunication of the intent and purpose of the insurance cover.
2. A skewed perception by the public that insurance is an unnecessary expence and the industry is out to rip off clients.
3. Use of insurance jargon in some of the documents, which is interpreted as a means to get the client to sign up for a policy without a full gap of what they are signing up for.
4. A lack of understing of the terms and consitions as well as the exemptions of a policy.
5. Lack of awareness about the complexity of underwriting a policy and claims processes, so a clients expectation of a simple and speedy settlement aren't met.
.... and the list goes on.
Gone are the days when an insurance policy appeared to offer protection, only for it to contain a harmless clause in small writing that would later contradict the insurance coverage offered. The industry has since regulated itself and in addition the government has laws and regulations that govern the insurance industry to prevent defrauding of the general public. And therefore, when you take an insurance policy you are guaranteed that in the eventuality that the risk occurs genuinely, then you will be compensated. If anything, insurance today has included clauses that offer more coverage that is relevant to the growing needs of their clients.
As a rule of thumb, it is standard for an insurance policy to have terms and conditions as well as exclusions. Unlike popular belief, these are not there to help insurance companies avoid claims and thereby make a profit, if anything these are put down to protect society such as preventing the policy holders from paying very high a premium for something many may not be exposed to.
Many insurance policies today need do not require a lawyer to break it down to common mwananchi. It is important however to ask your insurance agent any questions or clarifications you need about your insurance policy before signing the dotted lines.
While cost remains a key factor for many clients hence part of the reason why people compare insurance quotes from various companies before making a decision, this need not be the only determinant for a policy. Be careful to ensure the policy offered addresses your most pressing needs.
It is worth noting that insurance mitigates risks and thereby gives one peace of mind. There are many instances where insurance has saved people and businesses from what would have been potentially life-changing disasters if it weren’t for a policy to fall back on.
Remember to have a risk free week!