Basic Policyholder Guidelines

  • Make sure you have the insurance policy that will provide you with adequate coverage tailored to your needs
  • Opt for obtaining quotations from more than one insurer
  • Ask questions and compare insurers based on their service and rates in order to get the best deal and service for the coverage that suits your needs
  • You may want to seek the services of insurance brokers to benefit from their assistance in finding for you the most suitable policy and insurer
  • When dealing with a broker or brokerage firm, make sure they are duly licensed

Things you should know when purchasing an insurance policy

Legal Documents

Understanding your rights and obligations as a policyholder is fundamental.

  • The insurance policy includes the following documents:
    – The general conditions
    – The policy specifications schedule
    – In life insurance contracts, the application form and the commercial illustration are also part of the policy
  • Before you enter into agreement with an insurer:
    – Carefully read your policy document
    – Give thorough consideration to the clauses and exclusions
    – Review your application form and the information provided by you to the insurance company
    – Make sure you understand the special provisions
    – Read through your policy schedule
  • Your rights and the rights of your insurer are described in the general conditions document and specified in the policy schedule; you just need to know where to look
    – The two sections to find are mainly the “Clauses” outlining the rules that you and your insurer must follow, and the “Exclusions” which limit the insurer’s obligations towards you
    – You also need to understand when and how to file for a claim
  • The policy schedule shows the specifics of your benefits, and the details of the premiums and premium payments
  • In some cases, particularly in life insurance policies, you may have riders added to your policy.
    – Each rider has its own general conditions document or section, which needs to be included in the policy
    – The specifications of each rider should be clearly stipulated on the policy schedule. This includes the details of the benefits and premiums related to this rider

Premium payments

  • If you missed the payment of your insurance premium, you will probably still have coverage immediately or shortly after your payment was due
  • Typically, most insurance policies have a grace period of a certain number of days
  • Inquire about the grace period that your insurer offers you and negotiate terms of payment to avoid the cancellation of your policy

Policy taxes

  • The premium you pay to the insurance company is subject to the following taxes, also called stamps and duties:
    – Proportional stamps of 5% of the amount of the premium, except for transportation where it amounts to 3%
    – Fixed stamps of 2,000 LBP
    – Municipality taxes of 6% of the amount of the premium
  • Premiums related to life insurance covers are only subject to the fixed stamps