The insurance company base their decision on whether to accept or reject your proposal and what terms to impose on the information you provide in the Proposal Form.
As the information given is crucial to your Insurers, you have a Duty of Disclosure to provide all facts material to the insurance. Please read the “Important Notice” appearing on the Proposal Form.
You are required to sign a declaration that the information that you provide is the truth and that it shall form the basis of the contract.
What Should You Do When Filling an Auto Insurance Proposal Form?
When filling an Auto Insurance Proposal Form, you must state all facts material that you know. These facts material will affect insurance company whether they will receive or reject your proposal or charge you additional fee. In Life Insurance, facts on your health and occupation are facts material.
What happens if insurance agent makes mistakes or fills untrue information?
Even if the matter occurred not caused by your mistake, Insurance Company may refuse the contract. Due to this, you should always read what is written or fill meticulously before signing the auto insurance proposal form.
What is a Cover Note?
After you pay premium, an agent will issue a cover note as a temporary protection before the insurance company decide whether to cancel or receive proposal you. It will expire after that note ending date or when your proposal is rejected or when a policy is issued by the insurance company.
Make sure you get one cover note copy with complete information of everything on auto insurance coverage such as sum insured, premium, excess and protection period after paying the premium to an insurance agent.
Contact your insurance company if you do not receive your insurance policy after 30 day.
What should you do when considering buying a policy?
1. Always read and understand the policy terms and proviso.
2. Do not buy an insurance policy only because the push from insurance agent. Do only when you know the policy and if you need it. However, under law, you must own an auto insurance.
3. When you have your policy you must always pay the premium payments specified.
4. If you take too many policies, the insurance company probably will doubt it and they may cancel your policy.
What should you do if you involved in an accident
Make a report to police in 24 hours time on the accident.
Notify your insurance company in writing as soon as possible all the details about damages or losses which occurred by including the police report. The reasonable time period to report to the insurers is within 14 days. However, for cases which involves limb injury; where a policy holder is hospitalized due to accident, they should report to insurance company once being able to do so. If there is any case, other party charge you and you accept a summons to court, do not plead guilty but notify the matter to your insurance company. If you do not do so, the insurance company may never be responsible in defending your interest when there are claims on you or claims for the damages of others vehicle.
Final question on yourself
Do you own an auto insurance policy or life insurance policy? Have you read the terms and conditions of the policy? Do you know that you are tied down to various terms and conditions?
