The legislation in force in Spain obliges Spaniards to subscribe certain Insurance, such is the case of Mandatory car insurance or of Home Insurance linked to the mortgage. However, the world and the terminology of Insurance is very complex. Therefore, it is essential to be clear about certain key concepts before signing an insurance contract, such as who is the policyholder and what differentiates him from the insured.
In any case, it is important to have the experience of a good Insurance consultancy when you are going to take out Insurance. Euroteide Insurance is an Insurance consultancy that operates in the south of Tenerife and, with more than 25 years of experience, will know how to guide the client to find the Insurance that best meets their needs. Euroteide Seguros offers a wide variety of Insurance: from Life insurances o Self-employed insurance, to Community insurance o Funeral insurance.
Who is the policyholder
The policyholder or contractor of the same is the person who signs the insurance policy and who appears in the contract with the insurer. Thus, the policyholder will assume the obligations that the insurance contract imposes, fundamentally the payment of the insurance premium. That is why it is essential to know what responsibility the policyholder of a car insurance has. This figure can be both a natural person and a legal person.
The policyholder is, without a doubt, a figure of great importance in the Insurance contract, since he is the one who has the ability to designate beneficiaries of the same —that is, those persons who will receive the insurance capital from the Insurance company in the event that the insured risk is carried out—, the ability to renew Insurance or not to renew it.
Differences between the insured and the policyholder
The insured and the policyholder are two fundamental figures in the insurance contract. However, there are many who do not know how to differentiate the figures that appear in the Insurance policy. Let's see their differences:
- The policyholder is the natural or legal person who contracts the Insurance and, therefore, that it has to comply with the obligations of the Insurance contract. Thus, the policyholder is the one who is obliged to pay the insurance premium.
- The insured is the person covered by the insurance policy. Thus, the Insurance will cover the assets and the person (his health and his life, for example) of the insurer.
- The beneficiary is the person who will receive the compensation in the event that the insured risk occurs. In the case of life insurance, there is usually a list of beneficiaries who, in the event of the death of the insured, will receive the corresponding compensation from the insurance company.
Although the usual thing is that the policyholder and the insured coincide, it does not necessarily have to happen that way. In fact, this circumstance is quite common in group health insurance. In these cases, it is the company that contracts the health insurance - therefore, the company is the policyholder - for its employees - therefore, the workers are the health insurance policyholders. It may also be that the figures of the policyholder and the insured match that of the beneficiary. It is, for example, what happens in case of invalidity of a life insurance. The insured, upon being unable to work, will receive the compensation or income stipulated in the Insurance contract.
Although the three figures can concur in the same person, the truth is that nowadays the Insurance companies allow to adapt the Insurance to the needs of the clients. Therefore, it is perfectly possible for the policyholder to contract the insurance policy for himself or to benefit a third party.
What are the rights and obligations of the Policyholder?
The most important thing to know the difference between the policyholder and the other figures of the policy are the rights and obligations of both figures. The rights and obligations of the policyholder are as follows.
Policyholder rights
The policyholder has a series of rights. They are as follows:
- Right to request information from the insurer. As a potential client, the policyholder may request all the information required to be able to contract the Insurance in a thoughtful way and knowing the scope of the policy coverage, as well as the circumstances of the contract and the procedures to be carried out in case the insured risk takes place.
- Right to name the beneficiaries of the Insurance. In addition, they can change the beneficiaries of the Insurance whenever they want and as many times as they want.
- Termination of the contract. It is the policyholder who has the ability to renew the insurance policy or, on the contrary, not to renew the contract and terminate it.
- Petitions, complaints and claims. The Policyholder may submit the complaints and claims that he deems necessary to the Insurance company.
Policyholder obligations
- Premium payment. The fundamental and most important obligation of the Policyholder is the payment of the Insurance premium, that is, the price of the Insurance.
- Inform the insurer of any changes in risk. Any change that may affect the assessment of the risk covered by the Insurance must be communicated to the insurance company.
- Inform the insurer if the insured risk has occurred. The policyholder is obliged to notify the insurance company within 7 days that the loss has occurred. In fact, if you do not comply with this obligation, the insurer could claim the damages derived from not reporting on this matter.
- Reduce the consequences of the loss. The policyholder is obliged not to make the loss covered by the insurance policy more burdensome. In case of not complying with this obligation, the insurance company will not have to pay the corresponding compensation.
Undoubtedly, hiring insurance is an important decision about which you must be duly informed. It is therefore important to hire the services of a good insurance consultancy. This is the case of the Tenerife Insurance consultancy Euroteide Insurance. With his more than 25 years of experience, he will know how to find the insurance that best suits the needs of each client.