Insurance Policy: Everything you need to know!

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Insurance Policy: Everything you need to know!

Want to know everything about insurance policy ? So you are in the right place. In this article, you will find everything you need to better understand this important document of your insurance.

When something happens to the asset we have insured, like the car, some questions always arise. Who has never heard the phrase: “do you have your policy in hand?”So, if you still have doubts about what this is, we prepared this content to help you understand everything you need about your policy. 

What is an insurance policy?

The policy is a document issued by your insurer that aims to record all the conditions, clauses and risks agreed between the insured and the insurer. When you complete the insurance negotiation, be it auto residentialtravel  or life , and all information and payments are in agreement, an insurance policy is generated.

In the insurance policy, for example, it is informed that the insured transfers to the insurer all responsibility for the risks that may occur with the insured object, such as a house or car. There is also this responsibility in cases of travel, life or APP  (passenger personal accidents).

On the other hand, the policy contains all the duties of the insured, which must be performed so that there is no loss of rights. An example of this type of event is putting the car at risk when facing floods if there is a possibility of standing still and waiting for the water to subside.

In other words, this document is what gives assurance that everything agreed between the two parties will be strictly complied with. And this goes for both the insured not to lose coverage and the responsibilities of the insurer.

When can an insurance policy be cancelled?

Canceling a policy can occur for a number of reasons. We list the most important ones below:

  • If you omitted or lied about any information that directly influences the acceptance of risk or price, your policy may be cancelled;

  • False statements are also subject to cancellation by the insurer;

  • If you fail to pay your insurance, your policy is cancelled;

  • If you have a total loss, after the insurance company pays the full indemnity, the policy is automatically canceled;

  • If you are not interested in continuing with the policy for personal reasons, there is also the possibility of cancellation.

Is an insurance policy the same as a contract?

The term is common, but in practice, what does it mean? When we talk about policy, are we referring to the insurance contract?

To clarify this issue, if we consider that it is in the contract where all the conditions are established, yes; in this case, it and the insurance policy can be considered the same thing.

It is a document that the insured retains, in which all responsibility for the claims provided for therein becomes the company’s, for reimbursement purposes. 

Of course, in certain situations, audits can be done to find out whether the insured intentionally caused the damage—in which case insurance may not provide coverage.

But, in general, in other cases, everything that the insurer will bear in case of unforeseen events and accidents within the mentioned coverage is defined in the policy. 

If any coverage is missing, it is not part of the contract. 

What must be included in the policy?

In order for you to better understand how your insurance policy works , we will explain some things that must be included in the document.

First, the insurance policy must have all the details of the insured (the person who took out the insurance). Ie:

  • full name;
  • birth date;
  • Identification Card No;
  • CPF;
  • residence address.

Some more personal information may also be requested.

In addition, if the policy is for the insurance of a vehicle, it must contain all the main data regarding the insured asset, such as: 

  • automobile model;
  • number of Renavan;
  • year of manufacture;
  • model year;
  • chassis number. 

The vehicle and insured data are also accompanied, of course, by information regarding the insurance contracted. This means that the policy also includes the start and end date of the insurance (effectiveness), type of deductible chosen by the insured (in the case of Auto Insurance), in addition to the list of coverages included and the amounts stipulated for them. 

In the policy, the value of the insurance premium is also detailed, which is nothing more than the price that the insured must pay to have the protections contracted. In addition, the channels through which the customer can contact the insurance company are also informed.  

What information should I pay attention to in the policy?

Knowing all this, it is important that you pay attention to exactly what you hired. 

If you don’t get it right or don’t deal with a reputable broker, you can get the false sense that you’re safe from uninsured risks.

In addition, it is good to verify that the document was issued correctly. When picking up your insurance policy , try to check if the vehicle’s data matches yours. Also check that the personal information is correct.

If there is an indication of an additional driver in the insurance, if it is a car, it is necessary that the data related to this person also appear in the policy, as the insurer will only reimburse any problems that occur with him if everything is provided for in the document. 

Therefore, it is necessary to pay attention to this factor as well. 

When should I make changes to my policy?

Changes to the insurance policy may occur and for this, what is known as an endorsement is made. 

It is a document that contains changes to the original policy. Changes can be either personal or driver data, or vehicle data — this is the case when you change your car, but you will remain with the same insurance company.

Therefore, you only communicate this exchange and the insurance endorsement is made, with possible readjustments of values ​​as a result. 

For this, it is necessary to notify the company, which can be intermediated by the insurance broker. 

All essential instructions will be passed at the time of this move.

By doing this, it is possible to have the contract (or policy) fully updated, which avoids problems with the insurance company if something happens. 

If these updates have not been made, insurance payment denial may occur. So, in order not to be caught off guard, always be aware.

Are all policies the same?

As you can imagine, after checking these explanations, the insurance policy is not always the same. It varies according to the type of insurance, the coverage provided and the insured’s information. 

Looking for clarity and ease when hiring is very important, so that you don’t stay a minute without insurance or without understanding what you hired. 

In addition, it is important to have a relationship with a reliable broker, such as Minuto Seguros , who will help you to make the best decisions for each case. 

Among the reasons for doing this, it is worth remembering, is the integration with renowned insurance companies, transparency and agility in service.

Additional information found in the policy

See below for some information that you will find in your policy.

insurance term

The term of the insurance will also be contained in the policy. Regardless of the type of insurance contracted, it will have a specific start and end date. During this period (and with all payments up to date), you will be protected against any events that are provided for in the insurance policy.

When we talk about Car Insurance, the term of a policy lasts for 12 months from the start date of the contract. The term starts at 00:00 on the date stipulated in the insurance contract and ends at 00:00 on the final day. Home Insurance also has an annual term.

In the case of Travel Insurance, for example, the validity is different: it lasts from the start date of the trip to the day of the passenger’s return. If the passenger needs to return one day after the insurance period expires, he/she will need to contact the insurance company to adjust the coverage.

Premium amount, deductible amount and full indemnity amount

The premium amount (how much you paid or will pay for insurance) will be contained in the policy. The payment method and/or how many times the amount was paid in installments will also be informed.

The amount of the deductible, payment required only in cases of partial loss, will be indicated in the document. The same goes for the deductible of glass, reserve car, etc

Finally, the value of the full indemnity will also be informed in the policy. In these cases, payment by the insurer only takes place in the event of a total loss . The value will be indicated according to the FIPE Table of the current month.

How long does it take for a policy to be issued?

The term for issuing an insurance policy is approximately 15 days after the effective date. Some insurers have a shorter term, but, on average, this is the time that most of them inform the customer.

This does not mean, for example, that your protection will take 15 days to start. Talk to your broker to understand the issuance and coverage rules according to your insurer.

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