The insurance policy should include 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
When acquiring an insurance policy, it is essential that you do the following:
- 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:
- The “Clauses” section outlining the rules that you and your insurer must follow
- The “Exclusions” section which limit the insurer’s obligations towards you
You also need to understand when and how to file for a claim, in the Claims Handling section.
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.
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.
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 is 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.
Personal insurance lines help protect individuals from potential losses they could not afford to cover on their own and makes it possible to do things like drive a car and own a home without risking financial hardship or ruin.
Personal insurance lines include mainly:
- Homeowner’s insurance
- Motor insurance
- Health insurance
- Life and disability insurance
These products protect individuals and families against potentially crushing financial losses caused by fire, theft, natural disasters, death, accidents, lawsuits and illness.
The definitions and main covers of personal lines are presented in the following exhibit: