HINDSIGHT – It’s more than just Insurance

The task of taking out short term insurance is often the only risk management tool used to safeguard our most precious assets:

An Example:

“Anne takes out cover for household contents for a sum insured of R 500 000 at full replacement value, and has diligently paid her premium for the last 5 years. Anne is burgled and the thieves steal R100 000 worth of content. She subsequently submits a claim only for the assessor to tell her that her SAIDSA Approved alarm was not linked to her Security Provider. Anne’s claim is repudiated by her Insurer on the basis that the she has not complied with the Linked Alarm System Warranty under the household contents section of her policy.”

Some Advice:

Every short-term insurance policy issued is a contract of insurance that will have some form of general conditions, provisos, exclusions and warranties contained within the wording. Blindly many of us conclude these contracts in a hurry telephonically and bury the email / documents with the rest of the “I will review it laters “.

Hindsight may now tell Anne, “Make sure that you carefully read your policy documents and update the details of your new mobile number with all your service providers in order to receive important communication like “Your alarm battery is flat, the unit is no longer linked to armed response””. Anne’s reality is that not only did she suffer a devastating loss; she also paid 5 years worth of premiums only to have her claim rejected.

We all need to be pro-active with our risk management, this means fronting up and taking responsibility for its implementation, control and evaluation. I can guarantee you that long term saving will be well worth it; it may even save your life. The ancient philosopher Sophocles, Oedipus Rex hits the nail on the head: “ I have no desire to suffer twice, in reality and then in retrospect.”

Regards

JK