How to read your policy.
01Your policy documents
Every policy is made up of a policy wording, which sets out the cover, conditions, and exclusions that apply to everyone with that product, and a schedule, which shows the details specific to you: who and what is insured, the sums insured, the period of cover, and the premium.
Where the two differ, the schedule and any endorsements attached to it take priority. Keep all three together.
02Sum insured and limits
The sum insured is the maximum the insurer will pay for a particular item or section. Some sections also have sub-limits, for example for a single valuable item or for a specific type of treatment.
If the sum insured is lower than the real value, a claim may be reduced in proportion. This is often called the average condition.
03Excess and deductibles
The excess or deductible is the part of each claim you pay yourself. It can be a fixed amount or a percentage. Choosing a higher excess usually reduces the premium.
04Exclusions
Exclusions are events or circumstances the policy does not cover. Some apply to the whole policy, such as war or deliberate acts, and others to specific sections.
- Read the general exclusions first
- Then check the exclusions under each section you rely on
- Ask us about anything you do not understand
05Waiting periods
Some benefits only apply after a set time from the start of cover. Waiting periods are common for maternity and pre-existing conditions under health plans, and for some critical illness benefits.
06Your obligations
Cover depends on you meeting the policy conditions. The most important are:
- Disclosing all material information when you apply and at renewal
- Paying the premium on time
- Taking reasonable care to prevent loss
- Telling the insurer about changes that affect the risk
- Reporting claims promptly and providing the evidence requested
07Changes, renewal, and cancellation
You can usually change your cover during the year, for example adding a driver or increasing a sum insured, through an endorsement. Policies are renewed at the end of each period on the terms the insurer offers at that time.
Cancellation terms, including any refund of premium, are set out in the policy wording. Many policies refund premium on a pro-rata or short-period basis when cancelled early, provided no claim has been made.
