From the Editor

PAYING premiums each month to insure one’s possessions is something most people do grudgingly. However, you could liken it to putting aside a set amount monthly to play the lottery – the chances are that you will never benefit, but if you do, your reward will be worth more than all you paid in. Of course, the probability of needing to claim from your insurance company after being involved in a car accident or having your house burgled is high in South Africa – immeasurably higher than choosing the winning numbers in the lottery.

A worse scenario would be if you did something to result in the insurance company repudiating your claim. If you are going to the expense of paying those premiums each month, you need to make sure you have done all you can from your side to be honest and open with your insurer and that you know and adhere to the terms and conditions of the contract.

It’s also up to your broker or adviser (or a telephonic consultant, if you are buying insurance directly) to ensure you are fully aware of the Ts and Cs, including any exclusions (conditions under which you are not covered), and what is required of you to maintain your cover.

But if you cheat in order to lower your premium, such as telling your insurer you are the regular driver of a vehicle when it is, in fact, your 20-yearold-son, you are really only cheating on yourself, like people who cheat in academic examinations: it is likely to backfire.

On the other hand, if you believe you have been treated unfairly by your insurance company, there are avenues of recourse, including the Ombudsman for Short-Term Insurance, whose service is free.

Martin Hesse