When entering into a contract, insurance or otherwise, you have to make sure that you understand what it entails as well as the terms and conditions.
If you enter into a short-term insurance contract to insure your motor vehicle on a comprehensive basis, you must understand the term comprehensive. Even if you have comprehensive cover, it is still subject to terms and conditions, which means that certain events, such as wear and tear, lack of maintenance, un-roadworthiness etcetera will not be covered.
It is your right to have insight into the contract and you must request your broker to provide you with a copy before entering into the contract. It is further your broker’s duty to ensure that you understand and if not to explain to you.
Disclosure on both sides is the most important aspect of the contract. You must disclose any material information that may influence the Insurer’s decision in assessing the risk. If you had previous insurance and you had claims, or if an Insurer cancelled a previous policy, you must disclose this information. If you are placed under administration or if you are in financial difficulty, it must be disclosed.