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Monday, May 27, 2024

Why do you need insurance: we protect life, health, home and cottage?

Summertime is here. The father of the Ivanov family was bitten by a tick while they were visiting the dacha. In a panic, they lost the tick that they had removed in order to send it for analysis and determine whether or not it was infected. We therefore hurried to the hospital to receive an injection of immunoglobulin. It cost 7,000 rubles for the injection. What more were you able to do? Indeed, there aren’t any other options in this circumstance. You must receive an injection right away if you are bitten by a tick and it is impossible to determine whether the bite is infected. The injection, however, might be free. If Ivanov Sr. had purchased insurance (which costs about 300 rubles), the family would have saved 6,700 rubles. After this incident, the Ivanov family annually ensures all family members (and also gets vaccinated). It is not always possible to avoid troubles, but there is a way to compensate for the damage from them – to insure yourself.

What is insurance like?

Insurance is a way to protect you and your property from various risks. It comes in two types:

  • mandatory.
  • voluntary.

In the first case, insurance is necessary – this is dictated by law. There are few types of compulsory insurance:

  • medical (compulsory medical).
  • pension.
  • motor third party liability insurance (MTPL) for vehicle owners.
  • liability insurance for businessmen, as well as for several groups of professionals. For example, it is necessary to insure those who work as a notary, depository, cadastral engineer, appraiser, arbitration manager or customs representative.

It happens that insurance is a mandatory condition for issuing a visa to enter some countries. But from the point of view of the law, this is not a mandatory type of insurance.

Voluntary insurance is, as the name implies, a conscious choice. Almost everything can be insured: football players ensure their legs; singers insure their voices. You can insure life, health, house, cottage, car. All types of insurance are listed in the Law of the Russian Federation dated November 27, 1992, No. 4015-1

Why do you need insurance?

Insurance will not protect against accidents, natural disasters, bankruptcy, illness and other unpleasant things. But it will help cover losses:

  • A scratch on a new car is unpleasant. But it’s not so unpleasant if you have comprehensive insurance that will cover the costs of fixing it.
  • Flu while traveling is sad. But it’s not so sad if you have travel insurance, thanks to which your treatment will be free.
  • The neighbors flooded – it’s a shame. But it’s not so offensive if the insurance company pays for the repairs of the apartment.

What to look for when choosing an insurance company

  1. License
    The company must have a license for a specific type of insurance. Check to see if there is a license for exactly the type you need. This can be done on the Bank of Russia website. Download the “Insurance Entities” table, find the required company there and check. You can also check the availability of a license online using the Directory of Financial Market Participants (official information of the Bank of Russia).
  2. Tariffs
    Insurance tariffs must comply with the requirements established by the Bank of Russia. Very low rates may be a sign of fraud. The approximate cost of the policy can be calculated online on the insurance company’s website. Calculate the cost on the websites of different companies, compare the numbers. Please note: the more risks provided for in the contract, the higher the insurance price.
  3. Reputation
    Focus on well-known companies with a good reputation that have been operating in the market for a long time. Interview your friends, read reviews on the Internet.
  4. Conditions
    Please read the insurance conditions carefully. Request a full version of the contract, since not everything is written down on the policy form. Pay special attention to the paragraph that lists the signs of an insured event. Find out what your insurance doesn’t cover. Check with a company representative about the procedure for compensation of damages in various situations and ask about the deadlines.

What is insurance fraud and how to avoid becoming a victim of scammers?

The phrase “Insurance fraud” is most often used when talking about deception on the part of the insured – in cases where a client of an insurance company tries to illegally obtain money. But clients who want to insure themselves or have already done so can also encounter fraud or dishonesty of an insurance company.

Selling fake policies

This is a pressing problem for MTPL policies. For example, a person bought a car and went to register it. On the way, I met street agents and immediately took out a policy for only 1,000 rubles. It would seem that he saved money successfully. Formally, the form of such a policy is real, but insurance companies list it as invalid (lost). And the client can travel with it for a whole year and not know that he bought a fake. Problems will begin if an insured event occurs. It will not be possible to repair the car or receive money under this policy.

Online fraud

You can apply for a policy online for most types of insurance. This is convenient, saves time, the main thing is not to end up on a fake (phishing) page that duplicates the website of a real insurance company. Therefore, carefully check the page on which you plan to buy a policy. Make sure that this is the official website of the company: pay attention to the address in the address bar of the browser, to the secure connection icon or its absence.

Imposed insurance

This is not pure fraud, but rather the dishonesty of some insurers and credit institutions. They take advantage of the fact that people do not read the contract and do not delve into what they are signing. By law, the bank cannot require insurance from you when issuing a loan. He is obliged to offer the option of a loan without insurance (but in this case, the rate on an uninsured loan will be higher).

Example: a client took out a car loan, carefully read the contract at home, searched for information on the Internet and discovered that along with the loan he had taken out three insurances, much more expensive than the average market price, and he did not need two of them. What to do? The client has the right to refuse these insurances; for this there is a cooling-off period. It lasts at least 14 calendar days after purchasing the policy. During this time, you can surrender your insurance policy and get your money back. Please note in some cases, the policy cannot be returned, despite the cooling-off period.

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