A policy document is a legally-bound document that includes the agreement between parties. A typical policy document includes all specifics of a legal contract. Policy documents include many elements fit for different uses and no standard format is used in writing a policy document. Since policy documents are bound by legal constraints, it is imperative for both parties to keep a copy of the policy document should the need arise to claim on the parameters discussed in the policy document. Policy documents dictate the properties of an agreement, conditions, coverage, and compensation.
Insurance policy documents indicate the type of coverage, the amount of coverage, the restrictions and conditions that the insured party and the insurer agreed to. Insurance policy documents are usually several pages long, and its sheer length may throw some people off of carefully reading the policy document line-by-line.
To confirm the legality of a policy document, all parties involved in the policy document must give their approval or consent, usually in the form of an affixed signature. Policy documents are sensitive legal documents that need to be carefully examined before signing off on it.
Here are some guidelines on what to check on your policy document:
Make sure that your name, date of birth, addresses, company information, phone numbers, and e-mail addresses are accurate. Believe it or not, many insurance claims are declined because of this simple matter. Since the policy document is a legal-binding document, such errors can cost you your entire policy. Make sure that all personal information is correct before you sign off on the policy.
It’s important to take note of the dates indicated in the policy document. Usually the dates indicate the length of the coverage and the expiry date of the insurance policy. Also check the dates mentioned in the payments section. Include the current date with your signature when you sign off on your insurance policy document to provide proof that the policy is what it is on the date that you have signed off on it. The dates on the policy document protect your policy in a way that retrospective changes can be avoided.
One of the most important elements on your policy document is the amount of the coverage. Make sure that you check the policy document if it has the proper amount mentioned. Check the zeroes and the decimal point indicated on the document. R30000.00 is a lot different from R3000000. Although it may be comical to point out these mistakes, these minor typographical errors are legally bound to be executed and your signature would be proof enough that you have agreed to these terms.
Check to make sure that the coverage discussed with your insurance agent is clearly indicated on the insurance policy document. The document is riddled with a lot of legal terms, so don’t hesitate to ask your insurance agent to clarify the terms that you do not understand. If you don’t see what you have expected from the document, ask your insurance agent. It’s their job to make sure that you understand the terms of the insurance. Do not sign off on anything that is not 100% clear to you.
Follow your instincts when reviewing sensitive documents like insurance policy documents. There’s no harm in clarifying the parameters indicated in your policy document. It’s better to ask now than be surprised with the time comes that you would actually need to collect on your insurance policy.