As a policyholder you are entitled to the following:*
- Details of the intermediary
- Details of intermediary’s relationship with the insurer
- Copy of the policy/policy summary
- Details of the transaction including expenses, assumptions, values, benefits, premiums, loading, guarantees, exclusions
- Information about the cooling-off period**
- Implications of replacing one policy with another
- Notification from the insurer that a policy has been cancelled
- Written explanation for repudiation or non-payment of claims
*Applicable to policies sold after 1 July 2001
**You have a 30-day grace period during which you can cancel the policy or an amendment to the policy
When taking out a policy of insurance
- Always complete the proposal/application form yourself
- Always provide complete and accurate information
- If in doubt, disclose the information
- Always read any document before you sign it, including the fine print
- Read through the policy contract to ensure that it is what you want
- Keep a written record of your correspondence/dealings with the insurer/intermediary
- Make sure you are dealing with a trustworthy organisation to avoid “scams” and illegal operators
When taking out a funeral policy
- When buying from a salesperson, ask to see their license
- Where the seller or administrator is a third party funeral administrator, ask for the details of the insurer
- Read everything on the form including the fine print above your signature
- When there are questions or declarations about the any life assured’s health, disclose all important information
- You must be sent a policy or a policy summary when your application is accepted; insist on seeing the document, read it and make sure you understand it; if not, phone and find out what it means
- You have a 30 day “cooling-off” period after you receive the policy or summary to cancel the policy if you are not satisfied
- Make sure that your premiums are paid every month on time; it is your responsibility, even if you are paying by debit order or stop order
- Keep proof of payment of premiums
- Make sure that any beneficiary nominations are up to date and reflect your wishes
- When a life assured (the person covered by the policy) dies, the claimant must submit the claim as soon as possible
- Check in the policy how much time you have to submit a claim; if a claim is submitted late the insurer can refuse to pay the claim
- If a claim is refused for any reason the insurer or administrator must give you the reasons in writing
See also: Things to note when you write to us
