Here are some important points to keep in mind.
When you buy a new or used car, you need to buy insurance coverage. Please note that insurance coverage from the previous owner becomes invalid upon sale of the vehicle.
The insured value or sum insured depends on the market value of the vehicle. The maximum compensation you will receive is the market value of the vehicle.
Overinsurance occurs if the insured amount is greater than the market value of the vehicle.
Underinsurance occurs if the insured amount is less than the market value; you insure the difference yourself, and will only be partially reimbursed. For example, if you have insured your vehicle up to 70% of the market value, the insurance company will only pay 70% of the total repair costs.
Life insurance
Life insurance is protection against financial loss on death. The named beneficiary receives the proceeds, and is protected from the financial impact of the death of the insured. The death benefit is paid by a life insurer as compensation for premium payments made by the insured.
Life insurance can offer a combination of protection and savings components, and the ratio of these components in an insurance product can vary depending on the product type and consumer needs and preferences. An insurance product can have variable proportions of protection and savings, which can be selected by the policyholder among certain life insurance products.
To be insured - how to proceed?
Your first step is to contact an insurance company. List of insurance companies registered with SECP is available at the following link: https://www.secp.gov.pk/document/list-of-insurance-companies-2/?wpdmdl=20074.
You can contact the insurance company by phone, email or by visiting the branch. It is strongly recommended that you ask all the questions when the insurance agent/sales person visits you to provide information about the insurance policy. You need to clear any confusion you have about the insurance product.
Before you are insured, the insurance company will carry out a needs assessment to see which insurance policy is most suitable for you. The company will determine the probability of the occurrence of a loss and estimate the amount of the loss. This will be used to determine the level of premium you have to pay, and to see if you qualify for an insurance policy in the first place. This process may require an investigation of your driving history, credit history, health records, etc. depending on the type of policy you buy. Once you have qualified for insurance and your policy.
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