Why do insurance company hide some vital information from their customers till they fall in trouble?

Answer 1

The insurance companies are in business for only one thing, to get your money.

Answer 2

I doubt you can give a good example to back your question. No Insurance Company will not live up to their contract with you, If they would fail to do so it would be fraud. The State Ins Commission would lift their license to do business in your state. The Ins Co cannot afford to loose the whole states business for failing to pay one claim.

After an Insurance contract is issued you are the only one that can change it.

If you think you are having trouble with an Insurance Co. I suggest you read your policy.

You read far enough, you will find a clause, that reads something like this. If this contract does not meet with all the laws of the state in which it is issued, this paragraph states we will follow all the laws of the state.

Your question should be: Why do people attempt to hide vital information from their Insurance Companies.

Answer 3

Why do people never bother to read their insurance policy and assume everything is covered because they want it to be? Then when they find out it is not covered blame the insurance company?

Insurance companies have to place limitations on what can be covered. If they do not there is no way to measure the risk and the rates to charge.

Information is not hidden, people just don't bother to read the policy and ask questions until it is too late.

Every time my policies renew I review all new endorsements and coverages. That is what everyone should do to protect themselves and their belongings.

Answer 4

Your question is a little vague. Is there a specific example which you are referring to?

The inurers obligation is spelled out in black and white in the policy wording. Everything from what is covered, what is not, what they are covered for, what they are not covered for to minute details such as how long the insurer has to pay a claim or how an inurer and insured is to communicate with eachother is all spelled out in the policy. I understand the policy wording can be a tedious to read as most of it is long winded, not to mention the sheer amount there is to read, but there are people and resources available, from your broker/agent to online resources, which can help you understand your policy. Therefore there is no reason, besides lack of will, for someone to say, "I didn't know about that." It's your responsibility as a party to the contract to know what it is you are agreeing to.

Answer 5

Insurance policy is a contract between you and the company. Everything is spell out in the contract (always read the small print). The agent may not have explained everything to your satisfaction, but if is written in the contract you are entitled.

Answer 6

Well, they don't. But let me tell you, most customers don't WANT to hear about the policy, the 'catch', and very, very, very few ever READ the policy when it's issued.

Policyholders are LAZY, and don't want to take responsibility for what they are buying. Some agents are lazy, and don't want to take the time to explain - but most agents are willing, it's the customer that wants to "just show me where to sign, I'll give you a check and let's be done with this."

Answer 7

i dont think so. Everything you pay is in the policy. Coz sometimes we're not reading the policy terms and condition after getting one, so if there is a claim we are not aware of it. But everything is there.