We all know how it sometimes feels like we are throwing money away after a couple of years of paying insurance premium without making a claim. It can therefore be devastating to learn that your policy has been invalidated through some act or omission on your part.
The following guidelines if adhered to should ensure that you avoid making the mistakes often made by many policyholders.
-Never assume that the existence of insurance is a valid reason to act reckless or indifferent to the possibility of a loss occurring. An example would be leaving a vehicle unlocked with the car stereo detached and lying on the car seat
-Do not commence permanent repairs or replace damaged items whether in your home, vehicle or appliance until you have your insurer or its representative's agreement.
Insurance companies not only need to be convinced that an accident/damage occurred, they must also ascertain the extent of the damage and often have to rely on expert opinion of appointed repairers/assessors. These experts ideally prefer to inspect the damage before repairs commence
-Under no circumstance should you duplicate cover. Always confirm what your existing policies cover before purchasing other insurances so you don't end up paying premium twice or more for the same cover because you will only ever be paid once for any loss suffered.
Most insurance contracts are subject to the insurance doctrine of contribution which in effect states that when you report a claim you are obliged to inform your insurance company about other insurance arrangements you have that might pay out. Where there are other insurers involved, these insurers agree what proportion of your claim each will pay.
-Never leave your home unoccupied consecutively for more than 30 days. This may invalidate any claim for loss/damage caused by theft as well as damage attributable to bursting, leaking or overflowing of water tanks or pipes.
-Never exaggerate a claim or submit a false claim. Not only are insurers able to detect these acts, they also share information with other operators. You could therefore find it difficult to obtain insurance protection or at best end up paying much higher premium.
-Regarding vehicle insurance, do not admit liability or make any offer or promise of payment as this could prejudice the insurers in any subsequent negotiations.
-Finally, never conceal from your insurer or make a deliberate misrepresentation about a material fact. A material fact being fact which a reasonable man in a similar position would disclose.
Detailed information about the risk insured is usually only known to the you- the insured and the insurer therefore rely on you being open about these facts otherwise they end up getting terms and pricing wrong. The eventual discovery of these facts often leads to avoidable disputes in the event of a loss.
The forgoing notwithstanding it is advisable to equally familiarize yourself with the general exclusions as well the policy specific exclusions in your insurance policy.
The following guidelines if adhered to should ensure that you avoid making the mistakes often made by many policyholders.
-Never assume that the existence of insurance is a valid reason to act reckless or indifferent to the possibility of a loss occurring. An example would be leaving a vehicle unlocked with the car stereo detached and lying on the car seat
-Do not commence permanent repairs or replace damaged items whether in your home, vehicle or appliance until you have your insurer or its representative's agreement.
Insurance companies not only need to be convinced that an accident/damage occurred, they must also ascertain the extent of the damage and often have to rely on expert opinion of appointed repairers/assessors. These experts ideally prefer to inspect the damage before repairs commence
-Under no circumstance should you duplicate cover. Always confirm what your existing policies cover before purchasing other insurances so you don't end up paying premium twice or more for the same cover because you will only ever be paid once for any loss suffered.
Most insurance contracts are subject to the insurance doctrine of contribution which in effect states that when you report a claim you are obliged to inform your insurance company about other insurance arrangements you have that might pay out. Where there are other insurers involved, these insurers agree what proportion of your claim each will pay.
-Never leave your home unoccupied consecutively for more than 30 days. This may invalidate any claim for loss/damage caused by theft as well as damage attributable to bursting, leaking or overflowing of water tanks or pipes.
-Never exaggerate a claim or submit a false claim. Not only are insurers able to detect these acts, they also share information with other operators. You could therefore find it difficult to obtain insurance protection or at best end up paying much higher premium.
-Regarding vehicle insurance, do not admit liability or make any offer or promise of payment as this could prejudice the insurers in any subsequent negotiations.
-Finally, never conceal from your insurer or make a deliberate misrepresentation about a material fact. A material fact being fact which a reasonable man in a similar position would disclose.
Detailed information about the risk insured is usually only known to the you- the insured and the insurer therefore rely on you being open about these facts otherwise they end up getting terms and pricing wrong. The eventual discovery of these facts often leads to avoidable disputes in the event of a loss.
The forgoing notwithstanding it is advisable to equally familiarize yourself with the general exclusions as well the policy specific exclusions in your insurance policy.
