What are the advantages of using a broker to purchase an insurance product?
Using a broker to purchase an insurance product comes with a lot of advantages some of which are:
- The broker offers a professional advice on the appropriateness or suitability of the policy
- The best Insurer to place the policy with which will be based on their capacity and expertise
- Negotiate for cheaper premiums
- Assistance or facilitation of claims when they occur and ultimately
All these services come with a
ZERO cost to the insured. Thus, the services brokers render is free.
How much does it cost to use a broker?
Using a broker comes with a ZERO COST to the insured. In other words,
the insured does not have to pay for the services rendered by a broker.
Remuneration of the broker is done 100% by the Insurance Company.
What is a policy Excess?
A policy excess is the contribution by the insured in the event of each and every loss or claim.
Can I buy back the Excess on my policy?
Yes, excess on a policy can be bought back. However, it is restricted to certain policies only and it
can be granted at the discretion of the Insurer.
Note that buying back excess on a policy comes with an increased premium.
What is a No Claim Discount?
A No Claim Discount is a rebate on renewal premium based on the Insured making
no claim on the policy in the preceding year. For example, for a private motor policy,
after the first year of insurance, the following are the No Claim Discount
available when no claim is made.
- 1st year of insurance - 25%
- 2nd year of insurance - 30%
- 3rd year of insurance - 35%
- 4th year of insurance - 45%
- 5th year of insurance - 50%
Can insurance be transferred when I buy or sell property?
No, the insurance is not transferrable. When you dispose off your asset(s),
notify your broker immediately to terminate the cover. This may earn you
credit for a new policy depending on the time of cancellation. A contract of
insurance is strictly between the insured and the insurer.
Can I add another insured to my policy midterm?
Yes, you can. A policy can me amended during its tenure by giving a
written notice to the broker for necessary action. It is advisable that
when there are changes in the risk, an immediate notice is given to the broker.
How long does it take for a claim to be paid?
The duration of a claim payment depends on the type of policy,
the nature of claim and the corporation of the insured. Note that time
begins to run when all the required documents have been forwarded to the Insurer.
In other words, when the last document has been submitted. The insured is therefore
encouraged to provide all the information as quickly as possible to hasten the process.
Is my Insurance renewal premium affected when I make a claim?
Yes, your insurance renewal premium is affected by a claim made on the policy in the preceding year.
This is because making a claim increases your risk exposure. However, the broker can
negotiate with the Insurer in certain instances to waive such increment or adjust it
lower than what it ought to be.
Which insurance policies are compulsory in Ghana?
Currently the compulsory insurance in Ghana are Commercial Property Insurance, Marine Insurance,
Professional Indemnity, Public Liability Insurance, Third Party Motor Insurance and Workmen Compensation.
Insurance is a contract, represented by a policy,
in which a policyholder receives financial protection or
reimbursement against losses from an insurance company.