Why policy terms and conditions can “bite you”

Your short-term insurance contract can often seem confusing and overwhelming. One of the most important decisions you will make as a short-term insurance client will be to spend some time (with the help of your broker, if necessary) going through all the terms and conditions of your policies to make sure you understand the “ins and outs” of your cover. You will then know exactly what you are and are not covered for and there is little to no chance of any “surprises” at claims stage.

Below, we will go through some of the policy terms and conditions that we at Eqstra Financial Services feel are very important for you to familiarise yourself with.

Excess:
An excess is the amount you are liable for prior to the settlement of a claim under an insurance policy, “it is the agreed amount of money you pay the insurer as a contribution towards repairs or replacement” (Schyf, n.d.).

We have not had a situation in the modern history like we are currently experiencing with the pandemic caused by the C-19 virus. It is having a negative impact on almost every country across the world and nobody has a definite idea of where it came from, how long it will impact our daily lives and what the future will look like.

We have not had a situation in the modern history like we are currently experiencing with the pandemic caused by the C-19 virus. It is having a negative impact on almost every country across the world and nobody has a definite idea of where it came from, how long it will impact our daily lives and what the future will look like.

Most drivers have an idea of the basic steps to follow in the event of an accident, but many don’t realise how much revolves around admin processes. This can be confusing and lead to incorrect information that could hold up insurance or repair procedures.

Insurers will tell you the excess in your policy is there to protect you from spurious claims, or as a method of reducing the premium. For policyholders it is often infuriating and difficult to understand.