If you are a
millennial, then surely, you know what #Adulting means. You have reached an age
where you’re paying your own bills,
searching for the best career option, buying or renting a house to live in, and
planning for your very first car purchase. And while ‘Adulting’ also means ‘taking responsibility’, these major
milestones make it really important for you to have a secure financial net.
That’s exactly what insurance is: a
financial security net.
If you’re thinking of getting general insurance for your acquired car or
property, the terms might be a bit confusing and overwhelming for you. To help
you out, here are some important terms related to general insurance that you
should take note of:
General Insurance
Need we say
more? General or Non-Life Insurance covers damages against automobiles and
property that are caused by accidents, fire, natural disasters, theft,
burglary, and other unforeseen events, even natural disasters. Common types of General Insurance include Auto insurance, Property and
Fire, Travel insurance, Bonds, Personal Accident insurance, Engineering insurance,
Miscellaneous Casualty, Homeowner’s Protection Plan,
Marine insurance, Aviation, and other miscellaneous forms of non-life
insurance. Insurance companies can also insure any other special products you
own, based on special pricing.
Assured
This is YOU! Also
known as the insured, the assured is the owner of the property insured and is
covered by the insurance as well as protected by the terms mentioned in the
insurance policy.
Policy
An insurance
policy is a contract agreed by you and your insurance provider. This includes
all important details about your insurance, including but not limited to, the
details of your insurance coverage, premium, specific
risks and perils covered, duration of coverage, mode of premium payment, and
deductibles.
Premium
This refers to
the amount that you need to pay for your insurance policy. Non-life insurance
coverage is usually for one year.
Deductible
This pertains
to the amount in an insurance claim that you need to shell out before receiving
the insurance coverage. After paying this certain amount, your insurance
company will then start paying you the remaining amount of the claim value up
to the limits indicated in your insurance policy. The deductible is usually
very small compared to the total amount insured.
Agreed Value
This is a fixed
amount that you and your insurance company agree upon at the beginning of your
policy period. This is the amount your insurance company is willing to give you
should your property get damaged or stolen. Your property is insured based on
its agreed value.
Market Value
This is the
worth of your asset before an accident or natural disaster. If your insurance
policy is based on your property’s market value, it
means that your insurance company will cover the cost of repairs or replacement
for your damaged or stolen asset depending on certain factors.
Claim
This is the
request that you will file to your insurance company to cover for the loss or
reimburse you for the damages that your property incurred based on the terms
written in your insurance policy.
Compulsory Third Party Liability
(CTPL)
This refers to
car insurance, required by the law, that will protect the insured or assured
from liabilities arising from an accident involving the insured’s vehicle that results in a third party's injury or death. This is also
the minimum insurance policy required by the LTO for you to register your car.
Insurer
The insurer,
also known as your insurance company, issues an insurance policy to you, the assured/insured. There are a lot of insurance providers in the
Philippines, including Mercantile Insurance, which is one of the country’s pioneers and a trusted name in non-life insurance. The most important
factor in choosing an insurer is the trust that they will be there for you when
the need arises and can be counted on if there is a legitimate claim.
Mercantile has shown decades of long-term stability and responsible growth in
the industry which assures you that you are in good hands if the unforeseen
arises.
These are the
important terms that you need to remember when getting insurance. However,
knowing these is just like scratching the surface. What matters most is the
after-sales service you’re going to get from
your insurance provider. To get the best service you deserve, trust only the
credible and reliable partner that delivers superior insurance services while
protecting life’s assets: Mercantile Insurance. The company offers a full line
of non-life insurance products designed to suit your current and future needs
at competitive prices. If you already have an existing insurance agent or
broker, make sure to tell him to get your non-life insurance policy from
Mercantile Insurance. Or you can visit their website and start protecting
your assets today!
0 Comments
Share your stories with me