Key insurance checks as the year speeds up
• A checklist to help make sure you are not caught off-guard if you need to make a claim in 2024
It is that time where there are many pressing things which occupy people’s minds, such as school/university fees. Against this backdrop, it is perhaps understandable why this is a period where most insureds are likely to lose sight of critical aspects of their insurance policies.
This is aggravated by the financial constraints most people grapple with at this time of year. The high cost of living also does not help the situation in any way.
It is, therefore, critical to remind the insureds of key considerations when it comes to insurance policies at this time of the year to ensure they are not caught off-guard should the need to make a claim arise.
POLICY CHECKLIST
● Ensuring the bank account to be debited has sufficient funds on/by the date on which payment is due.
● Should there be insufficient funds, consider your policy wording to see what it says regarding the grace period. Alternatively, contact your broker or insurer to seek clarity.
● Ensure to pay before the expiry of the grace period, failing which your policy terminates automatically.
● Once payment is made, confirm in writing with your broker or insurer that payment has been made and request written confirmation that payment has indeed been received.
IF UNCERTAIN ABOUT ANYTHING PERTAINING TO YOUR POLICY, SEEK CLARITY FROM YOUR BROKER OR INSURER DIRECTLY
● When you pay after the grace period has lapsed, confirm with your broker or insurer whether that payment reinstates your policy. If so, as of when. If it does not, confirm whether it resurrects the policy anew — for example as though a new policy has been entered.
● Should you not be satisfied with the number of days stipulated in the policy as a grace period, consider seeking legal advice. The grace periods for both indemnity and non-indemnity policies are regulated by legislation.
● Check whether the December 2023 instalment was effectively debited. This may seem futile; however, most insurance companies change debit dates for the month of December. This is even more critical in the context of this past December, seeing that the 25th was preceded by a weekend. In view thereof, it is possible that the debit order was scheduled for three to four days earlier or later.
● Look out for any provisions pertaining to renewals and reassessments. Ensure to comply, if applicable.
● Look out for provisions or notifications which may introduce changes to the policy terms.
● Consider the duration of the policy and whether you are obliged to specifically renew or whether it renews automatically. Check whether the terms and conditions remain constant after it renews automatically.
● If uncertain about anything pertaining to your policy, immediately seek clarity from your broker or insurer directly.
Given the fact there are many things that people are busy with and trying to sort out at this time of the year, it is quite possible to overlook or lose sight of critical insurance aspects and this can have grave and undesirable repercussions. As such, it is imperative that you, the insured, proactively consider your policy/policies.
Although the above list is not exhaustive in terms of the aspects to look out for, they are among the most important and must be carefully considered.