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Chuks Udo Okonta
Every business transactions, insurance inclusive, come with terms and conditions which bring the buyer and seller together for an exchange of goods, services and cash.
It is expected that before the buyer of goods and services part with their money, they should have considered the implications that are tied to the terms and conditions.
It is a pity to note that most buyers paid for goods and services without studying the terms and conditions, this has over the years led to disputes between insurance policyholders and underwriters.
Insurance mechanism is very good but runs on terms and conditions just like any other business. The uniqueness of insurance is that it thrives through small amount known as premium paid by many people, hence, the premium must be protected to ensure people who needed succour at the time of mishap receive adequate compensation.
It should be noted that insurance money is never use for frivolities, hence, the stipulated terms and conditions are strictly followed.
The insurance seller and buyer are bound together with a principle tagged; utmost good faith, which requires both parties to exhibit righteousness, not seeking a means to defraud the other party.
It is necessary for every insurance consumer to first and foremost map out their risks which would enable them understand the terms and conditions, moreso, if they fit into the expected requirements.
Why you should read and understand insurance terms and conditions
* Insurers are not father Christmas
When buying an insurance policy, you should understand that insurance companies do not throw money around. They are in business to stay, hence would never pay claims on risks arising from negligence.
That you have bought an insurance policy to mitigate a risk, shouldn’t make you careless about what you insured, which must be a treasure to you.
For your claims not be denied when you need help, read and understand the terms and conditions.
* Know your rights
Payment of insurance premium accords you a right which is specified in the policy terms and conditions.
Understanding your rights, begets enforcement, for you can only enforce the rights known to you.
* Know your roles
Reading and understanding insurance policy terms and conditions would help you know your roles and limits. It would help you observe your responsibilities in the insurance contract which is built on trust and fidelity.
Studying and understanding insurance policy terms and conditions would help you know what the insurance company is expected to offer you when risk insured against happens.
* Claims process and payment.
Failure to understand the terms and conditions would rob you of claims and other benefits. Most policyholders today, especially those with third party motor insurance policy attend to risks which insurance companies ought to handle having received premium for the risks.
When you understand your rights in the insurance contract, you enjoy value for the premium paid.
Ignorance is said not to an excuse in law. That you failed to understand the terms and conditions stipulated in an insurance policy document, would never make an insurance company dash you claims.
Claims are paid according to rules and regulations, hence before you pay premium for a policy study the policy document, engage brokers and ask questions, for who often ask question can’t miss the road.