General terms and conditions of insurance - what is it anyway?

When we conclude an insurance contract, we often receive a so-called 'insurance contract' from the agent. General terms and conditions of insurance. My experience is that many people do not think about why they need this document or what it says. We approach it in a similar way to the rules and regulations on the Internet, we accept its content without reading it. Why this approach is wrong I will explain below.

What are General Insurance Terms and Conditions and why is it worth reviewing them carefully before buying a policy?

The T&Cs are nothing more than a contractual template that defines insurance terms and sets out the rules for the insurance in question. In other words, the T&Cs outline the rights and obligations of both you and the insurance company. By reading the T&Cs, you will first of all find out the duration of your insurance, in the event of which events you will receive compensation, what actions you should take to secure the insured property, when and how compensation will be paid to you if a loss occurs.
According to the Insurance and Assurance Business Act, the T&Cs should specify:

1. 1) the type of insurance and its subject matter;
2. 2) the conditions for changing the sum insured or the sum assured, where the general conditions of insurance provide for such a change;
3. 3) the rights and obligations of the parties to the insurance contract;
4. 4) the extent of the insurance undertaking's liability;
5. 5) the method of determining the extent of the loss - for property insurance;
6. 6) the method of determining the amount of indemnity or other benefit, if the general terms and conditions of insurance provide for derogations from the rules provided for by law;
7. 7) the method of determining and paying the insurance premium;
8. 8) the method and manner of indexation of insurance premiums, where the general terms and conditions of insurance provide for the indexation of premiums;
9. 9) the procedure and conditions for amending an insurance contract concluded for an indefinite period;
10. 10) the grounds, manner and timing of termination of the insurance contract, where the general conditions of insurance so provide, and the grounds, manner and timing of withdrawal from the group insurance contract;
11. 11) the date and method of withdrawal from the insurance contract.

Before taking out a policy, you should pay particular attention to the following questions. For which events the insurer will be liable and for which its liability is excluded. For example, in most cases the insurer will not be liable for damage caused by incorrectly secured property (e.g. theft of jewellery left in an open flat), or for circumstances that have been concealed (e.g. serious illness).

A very important issue we should also pay attention to is the duration of the insurance, and in particular whether we are entitled to cover from the day we take out the policy or only after some time.

A reading of the general terms and conditions of insurance should clear up any doubts we may have about what is covered, under what circumstances the insurer's liability is triggered, what steps we should take if a claim arises and what benefits we can count on from the insurer.

A careful analysis of the general terms and conditions of insurance will allow us to better choose the insurance that fully meets our expectations and will also save us unpleasant surprises in the future.

Do you need additional legal assistance? Have questions about insurance write to me!