What is an insurance policy and what is it for?

What is insurance policy? In a nutshell, a insurance policy is the document issued by the insurer to its client (insured) with information about the liability for the insured item, whether cars, real estate or even cell phones.

In short, an insurance policy is the insurance contract with the specifications, assignments and commitments with the insured's assets.

It should list the general clauses and conditions, in addition to particulars about the amount of coverage in case of theft or damage, payment amounts and essential data regarding the insurance.

For example, in case of theft of a car that has a auto insurance, the insurance company must ensure that the customer receives the amount of compensation previously agreed in the contract.

For this reason, it is extremely important that the customer carefully read the information in the policy so that both parties are in tune and in common agreement.

How long does it take to issue the insurance policy?

A issuance of an insurance policy or contract varies according to the insured item.

In the case of car insurance, the document is issued 15 days after the start of the term of the agreement between the parties. During this period, the company has the prerogative to accept or reject the clauses contained in the contract.

While the application is under analysis, the insured's property is technically covered by the insurance, as long as the first installment is paid.

Pay attention to the items that must be in the insurance policy

Compliance with contractual clauses is up to the insurer, who must establish in detail the information on each item contained in the document.

Thus, when picking up the contract, the customer must pay attention to the following fields:

• For car insurance (auto insurance), it is essential that the insured verify the characteristics of the car, such as model, color, year, etc. The same thing goes for home insurance.
• In the insurance policy, it is essential to contain basic information such as personal data of the insured person and other beneficiaries, in cases of additional ones.
• Pay attention to the descriptions of the coverages. Many policyholders end up missing important information about what the insurance policy will actually cover in case of damage or theft of the insured property. The amount of the indemnity must also appear visibly in the lines of the contract.
• The payment method is another item to be observed. In most cases, available options include bank slip, direct debit and credit card payment. In cases of direct debit, it is necessary to enable the competences of the function with the bank.

Updating and canceling an insurance policy

In case you need update the terms of a policy, either by changing the insured item for another, the model of a car for example, the customer must make a insurance endorsement. This endorsement guarantees that the contract is up to date and that the information contained therein is fulfilled.

Now, when it comes to cancellation, see below some situations in which insurance may lose its legitimacy:

1. By decision and initiative of the insured;
2. Payment of full indemnity, whether for life or car insurance;
3. By decision of the insurer, if it perceives fraudulent occurrences, omissions and issuance of false information by the insured;
4. Indemnity amount reaches the amount of insured capital;
5. In cases of default by the insured;

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