Insurance is one of those big black holes you’re never too sure about. Besides the incomprehensible terminologies being thrown around, having an agent trying to convince you to commit to his package isn’t exactly very encouraging. Just two weeks ago, we released Part 1 of our A-Z insurance dummy manual to help you grasp the idea of being insured. Here’s Part 2:
N- Natural events or disaster
This is most relevant for home and car insurance. Check if the insurance also covers damage during times of disaster such as fires, lightning, thunderbolt, floods or storms. It is important to know that you are covered for unexpected situations.
O- Operative clause
The operative clause is the part that outlines the coverage provided under the policy. It is the important part of the document that says what happens if you’re in a situation you’re insuring yourself for.
P- Personal accident
If you’re looking into the policies, check if it has a 27 hours-7 days worldwide coverage and the types of accidents it covers. You might not be able to prevent accidents, but you can manage the risk.
Q- Quality service check
Whether the service of any insurance provider is of quality will always be grey due to the subjectivity of consumer perception towards quality. To make life easier, run a quality service check by identifying the number of days for turnover or action from your insurance provider during emergencies.
R- Renewal
We cannot stress the importance of taking note of when your policy is up for renewal. What could go wrong if you don’t? If you are subscribed to a home theft policy and your home gets broken into days after the policy expires, your policy will not be able to cover your losses.
S- Snatch theft
You can always insure yourself against snatch thefts. Misfortune hits at very wrong times.
T- Tourist or traveller
Do a simple check on the travel insurance products of different providers and you will find that a lot of the things covered, such as rescheduled flights and getting deserted due to bad weather, do commonly happen. With the travel insurance, you would have that added peace of mind while having fun.
U- Underwriter
Each insurance company has guidelines to help the underwriter determine whether the insuring company should accept the risk. The underwriter is the one who accesses your financial capacity, your police records and tells the insurance company whether your life is too risky for them to deal with. The underwriter also sets a number on how much your premium should be.
V- Vehicle
Aside from checking your vehicles, do also stay prepared. The jam on the Federal Highway causes enough stress, but at least with a good auto insurance policy, you can drive with an ease of mind as your car is covered for accident repairs or during unforeseen circumstances.
W- Warranty
A warranty in the context of an insurance policy is a promise by the insured party that statements affecting the validity of the insurance contract are true. This is a very strict condition in a policy imposed by an insurer as a breach entitles the insurer to deny liability – meaning you won’t get covered when things go wrong.
X- X-ray
Before you’re rushed to that emergency room for an x-ray, secure yourself with an injury guard insurance regardless of how old you are. In fact, the older you are, the better this life hack will serve you. Imagine having to be in so much pain and being denied of treatment because you cannot afford it.
Y- You say YOLO?
We know you only live once, but let’s make life worthwhile. With every chance taken, there is definitely a risk involved. To manage your finances better during unforeseen circumstances, it is always a smart move to get yourself covered and protected as much as possible.
Z- Zero worries
Many of us fail to understand that bad things can happen to the best of us at the most unexpected times. Hence, it is time to zero your doubts and get in touch with an agent to get your worries sorted.
Hopefully, you’d have a better understanding of this complex topic. Till next time!
* The information above is contributed by AIG Malaysia.
