Importance of Updating and Reviewing the Information in Insurance Policy in South Africa

This article was posted on 03 June 2016

Posted in Health Cover


Health cover

Just like the regular health check up or a regular car service, it will be great to have a periodic review of your insurance portfolio. This will help you in ensuring adequate protection and cost effectiveness too. 

As far as Insurance is concerned, incorrect details on the policy implies incorrect coverage. How would you feel, if while processing a claim for your property, the insurer suddenly says that the damaged property and the insured property are different? Painful, isn’t it? How can this happen? The issue here is with the wrong information in the insurance policy. If there is a change in your address or the risk location, you should be informing the insurance company about this.

This can happen as an error too. So, the first review of your insurance policy should be the moment when you receive your policy document. You have to go through the wordings thoroughly and ensure that all the details are accurately entered. If there is any error, then you have to get it rectified by the insurer immediately. Unfortunately, only a very few policy holders does this exercise, may be because they are too busy or they aren’t aware of such issues. 

Also important is the deletion of items that you have sold or disposed off and inclusion of new items that you have purchased or acquired. Deletion of disposed off items ensures a cost saving and inclusion of new items ensure proper coverage of all items. 

In motor insurance, as there are three options, it will be good to check your policy and ensure that you have taken the right policy. If you have purchased a third party liability only policy, then you should be aware that it will not be covering damages to your vehicle as a result of an accident. For that you need a comprehensive policy. You may note that purchasing a Comprehensive Car Insurance, if your car is old may not be cost effective. 

Your priorities in life changes with your age. So does your life insurance requirements. If you have taken a new loan, you should increase your life insurance coverage so that your family need not worry about the debt in case of your death. Also, as the number of dependants increase you have to increase the coverage amount. A periodic review of your life insurance helps in ensuring that every policy has the right beneficiary mentioned. If you feel that you have to change the beneficiary, you can do that during this review. 

When you get married, you shouldn’t forget to include your spouse to your health cover policy if he/she doesn’t have one. If he / she have a health cover policy check both the details of both the policies with the insurers and find out if you have an option to combine the two. New born babies should also be added to the health cover policy without fail. 

A regular periodic review helps you to have your insurance portfolio with the adequate types of coverages as well as levels of coverage. It is very important from a claims perspective to properly review your insurance coverage periodically to ensure that your assets are adequately and properly covered.

 

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