Understanding the Complete Insurance Policy in Simple Language
Many things about insurance are not yet understood even by its members. In the world of insurance, there is what is called a policy before a member joins and subscribes to insurance services at a company.
The policy needs to be understood carefully so that there will be no disappointment later. Most complaints against the insurer are due to members not understanding the policy.
The policy is signed and agreed upon at the beginning before subscribing. The following review will discuss policies in the world of insurance, so you can understand their existence and function.
What is an Insurance Policy?
An insurance policy is defined as a letter of agreement between members who subscribe to insurance products and insurance service providers. Generally, in insurance, policies contain conditions, commitments, and risk transfers with insurance products.
With the black-on-white agreement, there will be no uncertainty between the member and the insurance service provider. Both sides can make it a guideline for prosecution.
On the part of the member can sue the insurer to fulfill his rights as a member who has set aside part of his money to pay insurance premiums periodically.
Meanwhile, the insurer can use it if the member sues outside the agreement.
Uses of Insurance Policy
After understanding what is meant by an insurance policy, the next step is to understand the function of the policy itself. These include.
1. Knowing and Understanding the Rights and Obligations of Insurance Members
The rights and obligations of members are two interrelated matters. Because before demanding rights. Then some obligations must be fulfilled by insurance members, one of which is to pay premiums periodically on time.
2. Knowing If There Is a Reduction Value
In the technical implementation of insurance, there may be values of deductions due to adjustments to income. The easiest example is in vehicle insurance, sometimes there is a reduction in value in motor vehicle insurance.
3. Understanding the Premium Scheme
The premium, which is an obligation for each member, needs to be understood properly so that there are no misunderstandings. With a written policy, the scheme for fulfilling premium obligations for insurance members will be clear.
4. Warranties of both Parties
Like the member party and the service provider, of course, it requires mutually agreed guarantees so that the obligations of both parties are fulfilled properly. Therefore, the policy is the initial foundation so that there is no misappropriation from both parties.
Contents in the Insurance Policy
Next, you also need to understand what is in an official insurance policy, so you don't get surprised when asked to fill it out. Many important points must be studied and understood in a policy so that benefits can be maximized.
The Right to Study the Policy
Because of the many things that need to be understood, members generally need a fairly long time to understand the policy as a whole. That's why there is a right to study the policy for 14 days from the time it is issued.
Data of Holders and Insureds
Make sure you read well in detail about the data of the holder and insured in the insurance policy to avoid any problems when you want to claim insurance.
Insurance Benefits
The benefits that you will get while subscribing to insurance products are also written in detail.
Exception
In an insurance product, there are exceptional conditions that make claims unable to be made. This is clearly stated in the policy.
Exception
In an insurance product, there are exceptional conditions that make claims unable to be made. This is clearly stated in the policy.
Premium Terms
You can look at the provisions in terms of premium payments in the policy, so you are not surprised about the payment later.
Discounted Fees
Sometimes there are also cost cuts that will later reduce your coverage benefits from the products offered.
There are many things you need to understand in an insurance policy. Therefore consider carefully and do not rush.
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