Dos and Don’ts

18
Jul

DOs AND The DONTs: DO Help Create Awareness

We must have greater Awareness about Insurance. The concept of insurance is not sufficiently known or understood in Sri Lanka . Unlike say Agriculture where our people are culturally adapted, Insurance is entirely an English concept. I have asked the Insurance companies to create greater Awareness about Insurance generally and not restrict their advertising budgets to Marketing their respective policies. Because of a lack of adequate knowledge about Insurance and its benefits and pitfalls, I strongly advise those who take ...

18
Jul

DOs AND The DONTs: DO Follow Procedure and Protocol

If an accident occurs which you think is covered by the insurance policy you have taken – for example, if there is damage to your workplace or factory by a fire or electrical problems or if there is a loss by burglary, you must inform the insurance company immediately (apart from notifying the Police etc). Do not repair the damage caused by the accident without getting the approval of the insurer. It is a condition in your policy that you ...

18
Jul

DOs AND The DONTs: DO Obtain Correct Information

Several persons have also complained to me about the bonuses received on their life policies. The Agents had promised very high bonuses and even given such an assurance in writing on the insurance company letterheads. But the insurance company is not liable for such assurances of Agents relating to bonuses. Bonuses are generally calculated on the interest rates in the country. Thus, they can fluctuate in amount and are not necessarily fixed amounts. You should contact the insurance company itself ...

18
Jul

DOs AND The DONTs: DO Pay the Premiums on Time

In Life insurance, however difficult it may be, please pay the premiums due on time. If premiums are not paid, the life policy can lapse. You cannot then get your money back unless there is a ‘maturity value' or “surrender value” to the policy which is normally a minimum of three years. Also, remember during that time your life was covered. Some people have asked me to direct the insurance company to refund the premiums paid. This cannot be done ...

18
Jul

DOs AND The DONTs: DO NOT Undervalue the Vehicle

In Motor insurance do not undervalue the vehicle in order to reduce the premium payable. If you meet with an accident and want the vehicle repaired the insurer will for the first time inspect and see the vehicle. He will soon realise that the vehicle is worth very much more than the value for which you insured. Then the insurance company can impose a stiff penalty. If you contest, they can offer to buy the vehicle at the value you ...

18
Jul

DOs AND The DONTs: DO Ask Questions (if any)

Proposal forms are therefore very important. So read them carefully and do not sign them unless you know and clearly understand what is stated in the proposal form and you agree with the Answers to the Questions in the form.

18
Jul

DOs AND The DONTs: DO Disclose All Required Information

All insurance contracts are governed by a principle called “utmost good faith” It comes from a Latin term ‘uberrimae fidei'. Many who insure do know this term or understand this legal principle. Normal contracts are not governed by such a requirement. For example, when you buy a loaf of bread or a motor car or a house you can inspect it before you buy it. So you know what you are buying. But in insurance, as a general rule, the insurance ...

18
Jul

DOs AND The DONTs: DO Read the Proposal Before Signing

There are now nineteen companies engaged in Insurance business in Sri Lanka . They are all private companies. They all use Agents to sell their policies. It is normally the Agent who brings the proposal form to you when you want to insure. He also helps you to fill up the form. Sometimes the Agent himself fills up the form and you merely sign. However, please make sure that you know what is stated in the proposal form because once ...