In my quest to sell insurance I encounter challenges explaining repudiation of claims. In fact, the word insurance in Kenya leaves a bad taste in the mouths of many. People just hate the word. The truth is the lack of knowledge has led many to have a bad experience with insurance.
Let me remind you a few things before I explain why the insurance firm wont be paying your claim. Insurance is trading of risks. An individual or a company usually referred to as insured, trades worries/uncertainties with the insurer in consideration for a fee known as a premium.
So the insured knows that there is a risk of eventuality then decides to pay someone to worry on their behalf. It is vital to note that as you take insurance know the risk that you are covering.
Many Kenyans just take insurance without considering the risks that they face. At the end of purchasing an insurance cover, you have the wrong cover for yourself. For example. You insure your car as a motor private when you know very well that you will use the vehicle as a taxi. In the event of an accident, don’t bother asking the insured for compensation.
Now this is why your insurer will never agree to pay you:
You probably insured against the wrong risk.
I said earlier that before taking up insurance cover, know the risks that you don’t want to worry about. If its the possibility of a fire burning down your house and the contents, it is important that you take a fire cover for your home and the contents. Being clear in what you want to cover against settles your mind to worry about other manageable risks.
For life related insurance covers, it is important to note the details of your cover. There are some insurance policies that only cover accidental deaths, in case of a natural death, you are not covered.
An example, walking a long the street then accidentally a car knocks you down. Unfortunately, you die. That is an accidental death. Some covers do not include sudden deaths. Like you went to bed fine then people wake up and you are gone. It is vital to know what your cover entails
You Under-insured your asset or yourself
Many Kenyans manipulates the value of their property to manage the premium amount. That is the worst mistake you can ever do to yourself. Under-insurance will make you hate insurance for the rest of your life. Get a professional to value your house, car or any other asset you want to insure the negotiate the benefits you are going to derive in your cover.
It is interesting to see how people choose sum assured for their life covers. Do you know that when you decide on a particular sum assured, that is what you are worth. Well, now you know. When taking an insurance policy consider what your value is, the take a cover that will compensate what you value is.
You took the right cover, but you negotiated the benefits out of the cover.
This is important, never negotiate the rate of the premium. Negotiate the benefits in your cover. What sales people don’t tell you when they are selling insurance is when they reduce the rate of premium, the benefits are chucked out of the cover.
Now when a benefit is removed, you will never enjoy it and in case of a claim, the insurer will tell you “we only pay this for client who took the cover at this particular rate” In the industry, insurance word is the worst word you will ever hear.
Political violence and terrorism benefit in a comprehensive cover for motor vehicle is usually charged at a particular rate. it is about 0.35% for commercial vehicles and 0.25% for private of the market value of the vehicle.
If you ask your insurance agent to reduce the premium rate, he or she will remove this benefit in the first instance which is risky. This means in case of a political violence and your vehicle is caught in the fracas, you are done. You buy a new car. Because you were never covered