Tips before buying an insurance


Thinking of buying an insurance -life insurance, motor vehicle insurance, health insurance etc.? Make sure you know what you’re doing. Be informed, by first reading the tips below.


Read and understand the policy

Read and understand the terms and conditions of the policy upon receiving the policy contract from insurance companies. You are given 15 days from the date of receipt to scrutinize contents of the policy. Use this cooling off period to validate the information and evaluate whether the policy suits your requirement. Understand the coverage -limitations or the exemption clauses. Contact the insurance company or its agents for further information or explanation, if necessary.


Importance of disclosure

You must completely disclose all material facts in your application form. If your agent fills up the application form for you, please read and understand the requirements in the form prior to signing it. Failure to do so could cause the insurance company to terminate your insurance policy or refuse to accept your claims.


Purchase of insurance policy

You can purchase insurance policy either directly from the insurance company, through an authorized agent, or from a bank/financial institution which has bancassurance arrangement with the insurance company. If you are buying the insurance policy from an agent, please ensure that he/she is an authorized agent of the insurance company. If you have doubt, request for proof such as registration/authorization card or contact the insurance company directly. All authorized agents are registered under Persatuan Insurans Am Malaysia (PIAM) or Persatuan Insurans Hayat Malaysia (LIAM).


Premium payment

You have the option to either pay the premium directly to the insurance company or through agents. Ensure payment is made under the insurance company’s name and make sure you receive the original receipt from the insurance company. Do not make cash payment to the agents, if possible.

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