In spite of all the benefits an individual expects after signing up any type of an insurance quote, when an insurance company collapses, the aftermath is not anything you would wish your enemy.
This may not always be the case with all the participating insurers in the industry, some may never go under and until we see it on the headlines we can never be sure.
So, what would you do if it happened to you? Many clients would be totally bewildered to an extent of not knowing the next move.
This is why it is also important to love seeking knowledge in advance especially when there is danger of loosing something of great toil and value as an insurance quote.
This can be damaging
A good percentage of policyholders also do not make any effort to get updates concerning their insurer’s organizations.
Once the cover is in force, many clients focus on ensuring that the premiums are paid on time for the risks they took cover for.
Others are too occupied to even watch the news bulletin and should the worst actually happen or the insurer becomes incapable of further operations, they will show up too late to reverse the situation to their advantage.
In other words, given a case like this, an individual might end up exposed to the same risks he or she took cover for.
Incidentally, if the risks covered by the policy occur before you do something, you would put up with all the cost of having no cover at all.
Suppose prior to the collapse of the insurance company, you had paid your third party cover policy for your auto, and it coincidentally caused an accident a few days later.
The liability would be entirely yours with no support at all from your insurer in the right courts and as well loose the money you paid for the cover.
Things will not have gotten worse until your asset is linked to the losses or even auctioned depending on your countries jurisdictions on such cases.
How can you still be safe even if your insurer closed down?
This is best moment for you to start being completely involved in getting more informed in every plan that you pay money for.
I think that an insurance matters expert will be of great help in a situation like this one, to give you the right advice.
When you are at the verge of loosing money and an insurance cover to your insurer, it is important to disconnect all money transfer details you have secured in relation to the policy.
The collapse, until investigated further shows that the insurer cannot be trusted and I bet any client to the tumbling company will be claiming the sum assured.
I would prefer taking up a policy in another financially sound insurance company and at the same time gather all the necessary documents concerning the previous cover to enable me fight back and win.
In the country where you come from, there must be a statutory governing body on all matters of insurance and it is from there that you can learn the stipulated procedures of defending your case against your “ex-insurer”.
Remember the game is not over until you get what you deserve as a client of your former insurance company.
Note: the views outlined above are only meant for educational purposes. I make no assurance that they are complete, accurate or even applicable in your home country insurance industry. More views are welcome!
