Here are 10 tips for foreigners who want to get insurance in the Philippines, based on the provided sources:
- Understand the Basics of an Insurance Contract: A contract of insurance in the Philippines is an agreement where one party (the insurer) undertakes for a consideration (the premium) to indemnify another (the insured) against loss, damage, or liability arising from an unknown or contingent event. Key elements include insurable interest, risk of loss, the insurer’s assumption of risk as part of a risk-distributing scheme, and the payment of premium by the insured. slot gacor maxwin
- Ensure You Have Insurable Interest: You must have an insurable interest in the subject matter of the insurance. For life and health insurance, this can include yourself, your spouse, your children, someone you depend on for education or support, or someone on whom you have a pecuniary interest. For property insurance, you have an insurable interest if a contemplated peril might directly damage you due to your relation to the property.
- Be Aware of the “Cash-and-Carry” Rule for Premiums: Generally, an insurance policy is not valid and binding unless the premium has been paid. This is known as the cash-and-carry rule. However, there are exceptions, such as when there is an agreement for installment payments and partial payment has been made at the time of the loss.
- Understand the Importance of the Insurance Policy: The written instrument containing the insurance contract is called the policy of insurance. It must specify details such as the parties, the amount insured, the premium, the property or life insured, the insured’s interest if not the absolute owner, the risks insured against, and the period of coverage.
- Note the Role of Agents: An insurance contract can be entered into through an agent. For example, a bank may act as an agent for an insurer when offering special savings and insurance accounts. Be sure to transact with authorized agents.
- Take Precautions Against Concealment and Misrepresentation: When applying for insurance, ensure that any representations you make are true and not misleading. Concealment of material facts or fraudulent misrepresentation can give the insurer grounds to avoid the policy.
- Review Policy Terms Carefully: Terms in an insurance policy that are ambiguous should be construed strictly against the insurer and liberally in favor of the insured. While insured persons may accept policies without reading them, this is not without exception, especially for businesspersons who should reasonably read contracts affecting their financial interests.
- Understand the Process After a Loss: If a loss occurs, you will need to file a claim with the insurer, providing proof of loss. The insurer then has a certain period to ascertain the loss and make payment.
- Be Aware of Double Insurance: Double insurance exists when the same person is insured by several insurers separately in respect to the same subject and interest. There are specific rules regarding how losses are shared among insurers in cases of double insurance, based on the principle of contribution.
- Consider Engaging with Licensed Insurance Companies: Ensure that the insurance company you are dealing with has obtained a certificate of authority from the Insurance Commissioner to transact insurance business in the Philippines. This helps ensure that the company is operating legally and is subject to regulatory oversight.
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