PolicyStreet presents to you our first education series – Insurance, as Easy as 1 2 3, where we shedlight about anything insurance related in a candid and entertaining way.
If you have a burning question, reach out to us at [email protected], leave us a reply below or even chat with us via www.policystreet.com. If your question tickles our funny bones, even better – we will feature them here to help others too 🙂
Question 1: Why would insurance companies ask me a gazillion number of questions and want me to deal with so much paperwork?
Insurance are legal contracts between us and the insurance companies to protect us against a broad range of diverse situations and conditions.
Take Personal Accident insurance as an example, when we pay a premium to the insurance companies, we are essentially transferring our accidental injury risks to them, so that financial losses suffered by us (hospital bills, medication etc) will be taken care of by insurance companies.
There are possibly trillion ways of us getting into physical trouble, because let’s face it, we are fragile beings that even a single mosquito bite could be irritatingly itchy, or worst, deadly. In fact, we could get so badly hurt just by missing a step or running!
Hence, it is in both ours and insurance companies’ interests to spell out in detail the kinds of risks which are claimable under the legal contract, since insurance companies assumed a particular set of conditions to propose the premium amount we have to pay. When insurance companies ask you a million questions about your health and occupation, they are determining if your premium amount is sufficient for them to accept the risk you transfer to them.
Exclusions contain the situations and conditions that cannot be claimed in an insurance policy. Therefore as consumers, it is extremely vital to read and understand our contract, before we decide to enter into one.
Sabar lah, my readers 🙂 Forgive lah insurance companies for the lengthy and tedious process, because really, they are doing the best they can under legal conditions. However, it is PolicyStreet’s promise to help make insurance buying experience less painful for you, and explaining to you the process using simplified language even your grandmama can comprehend..well we try to at least.