What ‘catches’ should I look out for?
- First, all insurance policies will place a limit on how much you can claim. For life and medical insurance, these show up as annual and lifetime claim limits (the total length of the policy). You can have medical insurance with big lifetime coverage numbers, but that’s no use in a bad accident if you have a small annual limit!
|Annual and lifetime limits as they appear in insurer material
“The Annual Limit shall increase by 5% on the starting Annual Limits every 2 years, beginning from the 5th year, for the next 15 years”
“’This policy has no Lifetime Limit, and an Annual Limit up to RM2 million!”
- Second, many policies, especially medical and motor insurance, will also have deductible amounts (also called ‘co-pay arrangements’ or ‘excess amounts’). This means that you’ll still need to pay something when you get your car repaired or visit a doctor, before the insurance company will bear the cost for you.
|Deductible amounts as they appear in insurer material
“You must bear the first 2% of the Sum Insured or RM400 (whichever is higher) for each and every claim arising out of one transit for every claim payable”
“We have the right to deduct RM400 as Compulsory Excess if at the time of the Incident the person driving the car is not named in the policy as a Named Driver”
- Finally, exemption clauses explain what insurance companies will and will not cover. For example, many medical policies won’t pay for baby delivery and maternity care costs.
|Exemption clauses as they appear in insurer material
“General exclusions include alcoholism, addiction and/or intoxicants caused by alcohol abuse or use of narcotic or hallucinogenic drugs”
“Experimental treatment, including therapeutic procedures which have not yet had their reliability recognised by the international medical community”
“There have been incidents of civil unrest in Hong Kong. We will treat claims that arise from such unrest from travel policies bought after 14 August as “known events”, which are therefore not covered”