What is a policy wording?
Most people probably don’t bother that much looking at the wording of their policy once they have received it, but there are important reasons to understand the nature of the policy and certain key elements of it.
It is important to remember that a policy is a legally binding document, and as such, it’s a really good idea to make sure things are understood.
Utmost good faith
The insurance company relies on the person applying for insurance to tell them everything that they need to know in order to assess the risk and charge a relevant premium.
Most of what they need to know will be asked by the questions on the proposal form, but if there is any additional relevant information then it is incumbent on the applicant to declare it.
If they don’t, then the insurance company may well decide to decline a claim and invalidate the policy. It is worth remembering that insurance companies normally only check all the relevant information once a claim is submitted, not when it is taken out.
For this reason, check the policy document to make sure that it reflects all the information given on the proposal form, and that information is accurate and correct.
Make sure the policy contains all the relevant contact details, not just for the insurance company and claims department, but also all details the applicant may need for emergency medical assistance services.
The policy booklet may contain details of additional services or benefits which are not necessarily flagged up during the application process.
As an example, Hiscox offers what they refer to as a stranded passenger service, which can give policyholders access to a vast number of executive lounges at airports if their flight is delayed.
As a legal document, the insurance policy will contain several phrases and definitions very carefully worded, which sometimes can be quite clear and at other times, not that easy to understand.
Below are a series of articles that set out in relatively certain terms what some of the most common words and phrases used in travel insurance policies mean.