An insurance policy is a proof of a written agreement made by the insurance company (the insurer) with the customer using the insurance service (the insured), the contents of which explain all the rights and obligations between the two parties.
often hear about insurance policies but we need to know and know more about insurance policies, are:
Although now insurance is not a new thing, but the complex discussion makes many people do not really understand about this one thing.
Even though insurance must be well understood so that you get the right benefits and are not exposed to insurance losses.
There are many important things that you must understand from insurance, one of which is the policy.
style="text-align: justify;">So that you don't get confused anymore, let's find out about the policy here!
What is an Insurance Policy?
know insurance policy
One of the terms that you often find when using insurance services is an insurance policy.
A policy is proof of a written agreement made by an insurance company or insurer with customers who use insurance services or the insured.
The policy explains all rights and obligations between the insurer and the insured as well as being evidence of a valid written agreement between the two parties.
With the existence of an insurance policy, both parties to the agreement become bound and have their respective responsibilities that have been agreed upon from the start.
The function of the policy is to protect every right and obligation of the customer and the insurance company
Difference between Insurance Policy and Insurance Premium
Many people think that the policy is a sum of money that will be paid to the insurance company every month.
In fact, the funds that will be paid to the insurance company, whether it's property, vehicle, or health insurance, every month are insurance premiums.
The policy is proof of a written agreement containing the rights and obligations between the insurer and the insured.
Functions of the Insurance Policy
insurance policy function
The policy has different functions between the insured and the insurer, namely:
1. Policy Functions for Insurance Users
Become a written evidence containing the guarantee of coverage for risks and compensation for losses that may be experienced by the insurance company.
Be proof of premium payments provided by insurance companies, be they conventional or sharia.
Be the most valid evidence to sue the insurer, if the insurance company is negligent or does not fulfill the user's guarantee.
2. Policy Functions for Insurance Companies
Become a receipt for insurance premiums paid by the insurance user.
Be written evidence of the guarantee given to the insurance user to pay compensation that may be experienced by the insurer.
Be the most valid evidence to claim compensation submitted by the insurer if the cause of the loss does not meet the policy requirements.
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Things to Pay Attention to from an Insurance Policy
The policy is a very important document for the customer, so it must be read carefully.
There are several important things you should pay attention to in the policy, such as:
justify;">1. Right to Free-look Period
The free-look period is a policy review period, which means that customers are given time to study the policies that have been obtained.
During the policy review period, you can cancel the insurance and get a premium refund if you don't like some of the provisions contained in the proof of agreement.
2. Personal Data
Make sure your personal data in the policy matches the data you have.
If there is a mistake, immediately ask the insurance company to correct it.
3. Insurance Benefits
insurance benefits
The insurance benefit is the amount of compensation that you will receive for the risks written on the proof of agreement.
Be sure to find out the insured risk, the benefits that will decrease if exposed to the risk, and the discount on the proof of agreement before starting to approve the policy.
4. Exception
Also know the exceptions or risks that are not borne by the company.
This is important so that your insurance claim will be accepted by the insurance company.
5. Waiting Period
The waiting period is the time it takes before you can receive insurance benefits.
Usually there are various waiting periods, ranging from 30 days, 1 year, even 2 years.
6. Coverage Period
Find out when your coverage period or when your insurance is active.
This is because not all insurance is valid for a lifetime.
7. Premium
Premiums are the money you have to pay every month to the insurance company.
Find out the amount you have to pay, the premium payment method, and late payment terms ketentuan