What is insurance exactly?

Insurance is risk transfer of one individual like you, or an organization, such as your company, to the insurers. You or your company shall be known as policy holder. Insurance company will receive payments from you in form of premium and if you experience any loss or damage, the insurance company would pay compensation to you.

Insurance basic principle

For example, policy holder (you) must have legal interest on the goods or life that you insure. This mean, you would bear the financial loss in case damage or loss happened to life or property that you insured.

You do not need to purchase more than one policy or plan to protect your property. If you own more than one policy, you can only make one claim if any loss or damage happens. The payment amount that can be paid will be contributed by the involved insurance company. As such, you cannot make profit from general insurance policy or plan. If you experience loss, insurance company would pay appropriate compensation or you will be put at same state before loss happen. However, you can buy more than one policy to protect your life.

Contract of insurance is on full principle of absolute trust. As such, you as policy holder or plan must disclose all necessary important information. If you fail to reveal that information, your policy or plan may not be valid and you will not be protected on any loss or damage.

Buying Insurance Policy and Essential Guide When Buying Insurance Policy

You can buy insurance policy at:

• Directly from the insurance company
• Through registered agent or licensed brokers
• Via banking institutions which possess bancassurance arrangement with insurance company
• Through the internet

Essential guide when buying insurance policy:

1. Understands your insurance policy including product features, conditions, benefit and its exemption limit.
2. Ensure that insurance premium which will be paid is reasonable.
3. Ensure the protection amount is enough and suitable your necessity.
4. Ensure all important facts are fully disclosed.
5. Deal by registered agent/licensed brokers or directly with the insurance company.
6. Monitor the protection period and time to pay the premium.