Thursday, May 16, 2019

Claim settlement policy of insurance company

Some people wondered why I advised against taking travel insurance, when I had promoted the sale of travel insurance in the past.

The key point to note is - what is the claim settlement policy of the insurance company.

When I run an insurance company, the policy was "prompt and fair settlement of claims".

If you can find an insurance company that practice this policy, you can buy insurance from that company.

However, if the insurance company's policy is to make the most profits from the business, you should avoid that company. They will find reasons to reject claims, even if the reasons are not fair and not reasonable.

I have seen many examples of unfair rejection of claims. So, I advise people to avoid buying insurance for small losses. It is better to self insure the loss and take the risk when it occurs.

We all lose things now and then. Sometimes, we lose a mobile phone. We bear the loss and buy a new one. We do not need to buy insurance for this kind of common losses.

The same approach applies to travel insurance.

If you are worried about accidents, buy a personal accident policy for a large sum.

Some of them might cover evacuation for an accident that occurs overseas

If this is not covered, do not worry too much about it. This event is quite rare. I think that many more people die from an accident that have to be evacuated.

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