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| Will your insurance pay out when you misread that billabong? |
RECENT research by consumer website FairerFinance shows the average
motor insurance policy runs to 30 000 words.
“The majority of consumers are notoriously bad at reading the
documents, contracts and policies for products and services they buy — often to
their own detriment,” said John October, spokesperson for Dial Direct Insurance.
The survey also found that just 27% of the people surveyed claim
they read the terms and conditions and policy documents in full. Of these, just
17% said they understood them. Almost three quarters (73%) of those who did not
read all the small print blamed this on the length of the documents.
October said even some people who do read the fine print get caught
out because they don’t understand the terminology.
To avoid a nasty surprise at claims stage, look at the vehicle
section on your policy and ask:
• Does this motor policy include hail damage?
• Is the driving of your vehicle restricted to a named driver?
• Is cover for theft or hijacking subject to the installation of an
immobiliser or tracking device?
• Are business use extensions included in car and household
insurance?
• What territorial limits are applicable?
• Are penalties imposed for young drivers?
• What excesses apply in the event of loss or damage?
• Is there cover for loss/damage from mining operations or from
landslip or subsidence?
• Is there provision for car hire?
• What other value-added benefits are there?
Look at the household contents section of your policy and
ask:
• What exactly am I covered for and what are the exclusions?
For instance, am I covered for loss or damage caused by fire,
lightning, explosion, malicious damage, falling trees, storm, flood, the
bursting or overflowing of geysers, equipment or pipes, break-in or theft?
• What about loss or damage to locks or keys?
• Will I be covered against the fraudulent use of my credit or bank
cards?
• What are the other value-added benefits such as medical response,
etc?
• What are the terms and conditions in terms of security measures
that must be present in my home and can I fulfill these requirements?
