The Insurance policy is the document or set of documents through which the Insurance contract is formalized. This document is made up of the general conditions of the Insurance policy, as well as the particular conditions of the contract and the supplements or special conditions agreed by the Insurance company and the insured.
Understanding an insurance policy is not always easy, since these contracts are full of complex terms, especially for someone new to the insurance world. It is therefore essential to have the service of a good Insurance advisory that explains to the insured the Insurance policy and the general conditions of the policy.
This is the case of Euroteide Insurance, an insurer in the south of Tenerife that sells all types of Insurance, from Life insurances but also Car insurance. Euroteide Seguros will put its 25 over years of experience available to customers to find the insurance that best suits their needs and clarify any questions that may arise about the insurance policy.
What are the general conditions of an insurance policy
The relationship between the insurance company and the insured must be based on a series of general conditions. These general conditions determine how the insurance company and the insured should act in the event of a possible accident, that is, they clarify what the function of the insurance policy is. Thus, the general conditions of an insurance policy can be defined as the basic regulatory principles of the relationship between the insured and the insurer, that is, the insurance company.
General conditions they usually respond to a standard model that Insurance companies apply to any insured. Thus, the general conditions constitute the common clauses of any insurance policy. These will determine the types of coverage, how the premium will be paid, how to proceed when an accident occurs or the conditions under which the policy can be required.
Minimum content of the general conditions
The general conditions must meet certain requirements. They are as follows:
- In no case may they violate the rights of the insured.
- The general conditions must be included in a mandatory way in the insurance policy or in a complementary document accompanying the insurance contract.
- It is mandatory that the general conditions are written clearly and precisely, so that the insured can understand them. This is essential, since, if they are not clear, they will be considered misleading and may be declared invalid by a court. In this way, the insured must fully understand the insurance contract in order to make an informed and informed decision.
Once the above requirements have been met, it is necessary that the general conditions have a minimum content. The data they must contain are the following:
- Identification of the contracting parties, insured and insurance company.
- Identification of the insured and the beneficiary in case they are persons other than the policyholder. This is very common in life insurance.
- Risk or accident that is insured.
- Nature of the risk insured by the policy.
- Insured objects.
- The insured capital or the scope of the insurance policy coverage.
- The total amount of the policy premium, that is, the money to be paid by the policyholder.
- Premium expiration date, that is, the date on which the Insurance will stop covering the risk.
- Duration of the insurance contract.
- Identification of the mediator.
- Control authority of the activity of the Insurance company.
- Legislation applicable to Insurance.
Particular and special conditions of an Insurance policy
In addition to the general conditions, the insurance policy will contain other elements: the particular conditions and the special conditions.
The particular conditions refer to the clauses that are drawn up and agreed by the insurance company and the insured for the specific insurance contract. Thus, the particular conditions have a individual natureTherefore may be applied preferentially to the general conditions. These will contain the identification of the contracting parties, their domicile, the designation of the beneficiaries, the excluded or complementary coverage - that is, those that differ from the general conditions -, the form of payment of the Insurance premium and the amount of this or the expiration date of the contract, among other things.
For its part, the special conditions of the Insurance policy refer to the clauses of the contract that regulate the scope of the insurance policy guarantees. The special conditions may include or exclude guarantees included in the general conditions, or modify said general conditions. In this way, the purpose of the special conditions is to clarify or detail the rules contained in the general and particular conditions of an Insurance contract.
For the particular and special conditions of an insurance policy to be valid, certain requirements must be met:
- They must be written clearly and precisely, so that the insured can understand them without problem and make an informed decision based on them. Otherwise, these could be considered null and void by a court.
- It may happen that the particular conditions constitute limiting clauses of the rights of the insured or the delimitation of the insured risk. In these cases, it is mandatory that they are specifically signed by the policyholder. In addition, they must be conveniently highlighted. If these requirements are not met, the Insurance company will not be able to apply these clauses to the Insurance policy.
Undoubtedly, understanding an insurance policy is not an easy task, especially for laypeople in the insurance world. Therefore, it is best to have the experience of a good insurance advisory. This is the case of Euroteide Insurance, an insurance consultancy that, with more than 25 years of experience in the insurance sector, will know how to guide clients in the search for the insurance that best suits them and their needs. In addition, it will provide advice and information so that clients can better understand the insurance policy.