The insurance industry has been grown up in recent years and it continues to grow. The relation between insurance companies and their insured individuals or organizations is determined briefly on the insurance card. All information about the agreement between the insured and the insurance company could be read through the insurance card. The insurance card include a policy number that is given by the insurance company to identify the insured. This number is usually used by the insured to either pay installments or collect the insurance amount if he was exposed to the specified risks.
What is insurance?
Insurance is a compensation contract written by the insurer and approved by the insured. This contract promises to compensate the insured person or organization if they were exposed to a specific risk such as a risk from earthquakes or fire. The insured accept to pay annual or semiannual installments to the insurer for the insurance service.
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What are the elements of the insurance contract?
The insurer: the company that will compensate the insured if a risk occurs.
The insured: the organization or the person who receive the payment if a risk occurs. (In case of life insurance, the beneficiary is the person who receive the insurance payment)
The premium: it is the agreed annual or semiannual payment that is paid by the insured to the insurer for his compensation promise if a risk happens.
Risks: they are the specific events that are insured against such as earthquakes or fire.
Who is responsible for regulating insurance?
In United States, the state is responsible for regulating the relation between the insurance company and the insured person. There were a lot of critics that asked for transferring the responsibility of insurance regulation to the federal authorities, but the congress exempted the insurance companies from laws of federal authorities. For so, the state carries on the responsibility and created regulatory schemes to be followed by the insurer and the insured.
How to read the insurance card
The full agreement elements and information about the insurer and the insured are listed briefly on the insurer card. So, the insured should be able to read his insurance card and know what is related to the written elements.
The insured identified information: the name of the insured person is the first information written about the insured regardless being the beneficiary also or not. Other information may include his home address.
The insurer contact information: on the bottom of your insurance card, the insurance company writes its information such as the contact number, the address and the website. For more required information, you can call the company’s number or send a message to it.
Coverage amounts: this element specify the percentage that you will get from the agreed cost of insurance as a compensation for the specified risks. The percentage maybe 10%, 25% or whatever according to the agreement. Sometimes there may be different percentages for different risks covered.
Policy number: the policy number is important for both the insured and the insurer, both of them could track the insurance process by using this number. It is included on the insurance card and it is called “policy ID”.
You use the insurance policy number either to pay installments or receive the insurance amount after exposing to the specified risk on the insurance contract. You can find the insurance policy number on your insurance card. If you unintentionally lost your insurance card, you have two other methods to find your insurance policy number:
Check the policy number finder.
The policy number finder is an online page that gives you the access to all available insurance companies, choose your insurance company and enter your required personal information, then you will get your policy number. To find your policy number, visit the policy number finder website from the following link: www.apgli.ap.gov.in
For more information about how to get your insurance policy number, read the available information from the following link: www.metlife.com/policyfinde
Types of insurance contracts
There are many different types of insurance contracts, most common types include the following:
Life insurance: while other insurance types give promises to pay a compensation to the insured if he is exposed to a certain risk, life insurance is different, the promise here is to pay a compensation to a third party (the beneficiary) if the insured himself is dead. Nowadays, life insurance is considered the most important type of insurance because nothing is more important than human life. Because persons care about their families, they sign life insurance contracts as a protection for their families after death.
Fire insurance: both individuals and organizations avoid the risk of fire by getting fire insurance. This risk doesn’t affect only individuals and their properties, but it may affect the surrounding also. The waste resulted by a fire is compensated by the insurance company if the property was insured, then the property condition is restored as it was before fire. So, the society doesn’t have to lose too much.
Social insurance: this type of insurance is made for the category of people who can’t afford to pay for a normal insurance contract. Employees are an example. Companies usually pay for social insurance instead of employees. Social insurance protects people by providing pensions, disability benefits, sickness insurance and unemployment benefits.
Marine insurance: marine insurance is intended to insure ships and freight against ocean marine risks such as pirate’s attacks, fire, destruction or inland marine risks such as a freight nonpayment.
Liability insurance: this insurance type manages the relationship between three parties, the insurance company, the insured (a factory or a motor selling company), and the purchaser. When the insured is liable to pay a compensation to the purchaser for damages according to a previously signed contract, the insurance company takes on this responsibility and it pays instead of the insured.