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Common insurance errors and how to avoid them

 Dealers with insurance companies in Egypt are involved in many errors when dealing with insurance companies; These include the failure to ascertain that the company, its subsidiary or its insurance broker is licensed to engage in an activity by the General Financial Supervision Authority. 

This entails the risk of being installed by companies that are not monitored by the Authority, resulting in loss of the client's funds and non-compensation. The correct disposition is to ensure that the company or its subsidiary obtains a licence from the Authority by requesting access to the licence certificate from the company's officials and obtaining a copy thereof.

Common insurance errors and how to avoid them

 Financial control explains the manual for dealing with such errors:

The General Authority for Financial Control, on its website, explained in its review of errors experienced by insurers when dealing with insurance companies, which also include not reading the terms of the policy well before signing.

This entails the risk of the customer not knowing his rights with the company, as well as the obligations owed to him, which may result in disagreements with the company, in which case the correct conduct is to read the terms of the document well; This is to ensure that you know your rights from the company and know your obligations with the company.

Errors also include lack of accuracy and credibility in the information provided by the customer when writing insurance applications in relation to the subject matter of insurance and the risks to which it may be exposed in property and liability insurance, This entails the risk of not accurately estimating the magnitude of the hazards covered and not determining the appropriate price of the risk's value. and hence the lack of genuine coverage of the risks that the customer needs to insure.

The correct conduct in this case is to make all data and information on the subject matter of insurance when writing the application for insurance accurately and honestly; So you can get adequate and real insurance coverage for the subject matter of insurance.

Errors include making incorrect statements:

Such errors include the failure to make correct statements in the statements signed by clients about their health status in life insurance,

This entails the risk of insurers' refusal to pay the insurance amounts specified in the policies when the risk and the many problems involved are realized.

The correct action is to cooperate fully and sincerely with the insurance company when making statements about your state of health and when signing statements submitted to you to ensure the preservation of your insurance rights.

These errors also include the client's desire to reduce insurance rates, as opposed to the high volume and nature of the risks to which they may be exposed,

This entails the risk that insurers will not adhere to the appropriate price for the high risks insured and create competition harmful to the insurance market,

The correct disposition is that the customer, when identifying the insurance company, ascertains that the lesson of the insurance service performed by the insurance company from the time of issuance of the policy until the payment of the insurance amount.

There is a mistake not to commit to payment of insurance premiums by the agreed dates, which results in the risk that actually collected premiums will be reduced, the value of the allowance for doubtful premiums will be increased, and the insurers' liquidity will not be available and the compensation will be denied when accidents occur to clients.

The correct action is to ensure that insurance premiums are paid on time so as not to be subjected to the termination of the policy or the loss of your insurance rights.

Errors experienced by customers in dealing with insurance companies include the payment of premiums by customers after the risk has been realized and the claim for compensation,

This entails the risk of the insurance company refusing to pay the compensation. The sanitation procedure is to confirm that you must take into account the payment of insurance premiums on maturity dates and obtain the document indicating the payment of those premiums on time.

These errors include customers' lack of credibility in describing the incident notifications given to them for fear of liability or refusal of compensation by companies.

This entails a risk of inconsistency in the information provided by clients between incident notifications, authentic documents from police records, expert reports, etc., thus losing the value of compensation in accordance with document requirements.

The need to adhere to the principle of goodwill:

The correct action is to ensure that the customer's adherence to the end principle of good faith in making the correct statements is an ongoing obligation at the beginning of insurance and when the risk is achieved in order to guarantee your insurance rights.

Insurance customers are mistaken for failing to comply with the policy requirements in terms of maintaining the subject matter of the insurance or taking the necessary reserves to minimize losses upon occurrence of the accident and to inform the insurance companies on time of the policy.

This entails the risk of companies refusing compensation at the time of the incident or reducing the amount of compensation in proportion to the customers' estimated losses.

The correct action is to ensure that your obligations under the policy are fulfilled in a timely manner and to notify the insurance company of any changes to the subject matter of the insurance; To ensure the preservation of your insurance rights.

Errors also include attempts to gain from insurance companies by severely overstating the values of repairs or replacing the subject matter of insurance.

This entails the risk of the length of the compensation settlement on the one hand and/or the client being denied the claim on the basis of the terms of the document, and customers losing credibility on the documents submitted by them to the insurance companies to settle the compensation,

The customer (insured) is also liable for fraud and fraud in the data and information provided, in accordance with the requirements of the documents, resulting in the refusal of compensation for the incident.

The correct conduct is to ensure the credibility of your dealings with the insurance company in terms of not resorting to the submission of incorrect or overstated statements or documents in some of its statements on the settlement of compensation; So as not to waste your insurance rights and be careful to keep all the reimbursement document.


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