Methods of insuring and steps involved while undertaking an insurance policy

  

Date Posted: 12/19/2012 3:14:48 PM

Posted By: sashoo  Membership Level: Silver  Total Points: 382

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Methods of insuring:
1. Through direct approach:-
This is where a person seeking to take an insurance cover goes to the insurance company to request for the same.
2. Through an insurance broker:-
An insurance broker acts as an agent for the insurer and insured. If an insurance broker insurer’s people they submit the money and details to the insurance company. An insurance broker insures people and properties on behalf of registered insurance company hence the broker is expected to submit a list of those insured and any premium paid to the insurance company by so doing he is compensated by way of commission.
3. Through a full time employee of the insurance company or those who work on commission basis.

Steps involved while undertaking an insurance process:
1. Filling of a proposal form:-
Any person willing to be insured by the insurance company is expected to fill a proposal form provided by the insurance company. The information to be filled on this form include; full names of the person to be insured, ID Number, policy he intends to undertake, his occupation, salary / income, duration for the policy, next of kin, age, sex.
2. Reception of the proposal form by the insurance company or its agent. The insurance company will therefore scrutinize the information filled in the form and sometimes if necessary inspect the property to be insured. This information is relevant to enable the insurance company to effectively compute premium payable.
3. After accepting the proposal form and having compute premium, the insured pays first premium. After paying 1st premium he is issued with a cover note which takes 30 days before it expires.
4. After one month the insured is issued with a policy certificate which is the main agreement between the insurer and insured.
5. In case of occurrence of a risk the insured is required to notify the

insurance company immediately hence the insurance company will give him a claim form to enable him be compensated for the loss encountered.
6. Before the insurance company compensates the insured, it has to survey or investigate to confirm that the occurrence was not influence.

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