Insurance Consumer Rights and Obligations ~ Insurance Academy

Insurance is a unique service product. Why is it unique? Unique because insurance sells a promise to pay if the consumer incurs a loss covered by the insurance policy. As an insurance consumer, you must be well aware that buying insurance products has several risks:
a. Claim denied;
b. Penalties are imposed for late premium payments; and
c. Impairment of investment value or loss (for unit-linked products).

Read: The following are tips so that your insurance claim is not rejected

Of course, insurance consumers are entitled to all information and explanations regarding the insurance products purchased. Insurance consumers are entitled to:
a. Obtain information about products and/or services that are accurate, honest, clear, and not misleading;

b. Obtain the latest information that is easily accessible;

c. Obtain the right to study the policy during the grace period (cooling-off period). If the consumer finds discrepancies in the data or offers in the agreement or policy overview section, the consumer has the right to cancel the policy during this grace period, which is 14 days after the policy is received by the consumer. Premiums that have been paid by consumers can be returned minus the required administrative fees. If the change or cancellation by the consumer occurs after the cooling-off period ends, the consumer must accept the consequences that must be borne in accordance with the agreement in the agreement or the summary of the insurance policy.

Read: How to Quickly Cancel an Insurance Policy

d. Get an explanation if the claim submission is rejected;

e. Get an explanation of the rights and obligations of the policyholder;

f. Get an explanation of the costs that may arise and need to be paid; and

g. Get the opportunity to choose if the product is offered in the form of a product package.

After understanding your rights, let’s understand your obligations as an insurance consumer:
a. Ensure that the type of insurance selected is in accordance with the needs and capabilities. For example, if you want protection for yourself, you can choose life insurance and adjust the selected premium according to your abilities. Furthermore, if you are a type of traveler, then you can choose travel insurance;

b. Fill out and sign the insurance application form or application in good faith, honestly and completely. Especially for insurance products, Friend Attitude, your dishonesty in filling out forms or applications at the beginning can result in non-fulfillment of claims in the future. So, being honest and having good intentions are really points that you must adhere to when choosing to use insurance products;

c. Provide information and documents that are accurate, honest, clear, and not misleading (utmost good faith);

d. Read and understand well all the provisions stated in the insurance agreement. In insurance there is an insurance policy and an overview or statement sheet. Prospective policyholders must read all the provisions in the document in full. The overview contains, among other things, the insured’s data, policyholder data, sum assured, scope of coverage, insurance period, additional costs, premiums, exclusion provisions and so on. Policyholders are required to read the document carefully to ensure the data listed is in accordance with the data provided previously and in accordance with the agreement to avoid the possibility of being harmed in the future.

Especially regarding the exclusion provisions, each type of insurance has a list for things that are not included in the protection offered. For example, life insurance will not approve claims against death caused by certain factors such as suicide, extreme sports, or other things that are prohibited by law;

e. Sign a complete insurance agreement as proof that you agree to the agreement;

f. Pay premiums on time. The insurance company will drop a grace period or a premium payment deadline according to the agreed day. If you do not use the auto debit feature, then you must remember the premium payment deadline and pay it on time to avoid fines; and

g. Pay other costs that may arise in accordance with the insurance agreement, such as fines for late payment of premiums, and others.