As a policyholder you are entitled to the following:*
– Details of the intermediary
– Details of intermediary’s relationship with the insurer
– Copy of the policy/policy summary
– Details of the transaction including expenses, assumptions, values, benefits, premiums, loading, guarantees, exclusions
– Information about the cooling-off period**
– Implications of replacing one policy with another
– Notification from the insurer that a policy has been cancelled
– Written explanation for repudiation or non-payment of claims
*Applicable to policies sold after 1 July 2001
**You have a 30-day grace period during which you can cancel the policy or an amendment to the policy
When taking out a policy of insurance
– Always complete the proposal/application form yourself
– Always provide complete and accurate information
– If in doubt, disclose the information
– Always read any document before you sign it, including the fine print
– Read through the policy contract to ensure that it is what you want
– Keep a written record of your correspondence/dealings with the insurer/intermediary
– Make sure you are dealing with a trustworthy organisation to avoid “scams” and illegal operators
When taking out a funeral policy
– When buying from a salesperson, ask to see their license
– Where the seller or administrator is a third party funeral administrator, ask for the details of the insurer
– Read everything on the form including the fine print above your signature
– When there are questions or declarations about the any life assured’s health, disclose all important information
– You must be sent a policy or a policy summary when your application is accepted; insist on seeing the document, read it and make sure you understand it; if not, phone and find out what it means
– You have a 30 day “cooling-off” period after you receive the policy or summary to cancel the policy if you are not satisfied
– Make sure that your premiums are paid every month on time; it is your responsibility, even if you are paying by debit order or stop order
– Keep proof of payment of premiums
– Make sure that any beneficiary nominations are up to date and reflect your wishes
– When a life assured (the person covered by the policy) dies, the claimant must submit the claim as soon as possible
– Check in the policy how much time you have to submit a claim; if a claim is submitted late the insurer can refuse to pay the claim
– If a claim is refused for any reason the insurer or administrator must give you the reasons in writing
