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What is the insurance policy and what are its properties?

Taking out insurance has become an essential part of anyone’s life. For them to be duly formalized, the insurance policy is necessary, the document issued after signing a contract between the owner of the insurance and the insured company.

What is meant by the insurance policy?

All existing insurance in the market is duly completed with the insurance policy, which is defined as the document that gives legal validity to the contract signed between the insured and the insurer, as stipulated in article 5 of the Contract Law Insurance (LCS).

Said policy includes the legal terms and risks of the insurance company on the contract holder:

  • Obligations of the insurance company in the event of damage
  • Definition of the risks that are insured and not
  • Form of settlement of compensation and payment of premiums

Elements of an insurance policy

The security guarantees offered by this type of legal document mean that several fundamental actors come into play in the process of their constitution.

  • The insurance company: the entity with which the desired type of insurance is contracted.
  • Insurance holder: is the person in charge of signing the contract with the insurer and signing the insurance policy provisions.
  • Beneficiary: legally, it is the person who will receive the sum of money if compensation is made.
  • Insurance premium: the price that the insured pays the insurer in exchange for these protection rights.

The minimum content of an insurance policy1- Full name and address of the legal entities involved in the insurance policy

2- The concept of insurance, duly detailed

3- Object of the insurance, whether it corresponds to a natural person (life, accidents) or an asset (car, motorcycle, property)

4- Designation of the type of risk insured in the policy. All those not included in the policy cannot be compensated with future compensation.

5- Premium to be paid by the insured

6- Date of entry into force and expiration of the insurance

7- The sum insured in the form of compensation for risk

Types of insurance policy

Insurers offer different policies for each type of insurance depending on the intentions when insuring.

As in many other commercial contracts, insurance policies respond to a specific object that the insured wishes to protect based on their personal, family, or other interests.

In this way, many are the people who opt for a change of insurance policy depending on the goals they pursue or ask an insurance broker for advice.

Is an insurance policy the same as an insurance contract?

Typically, the insurance policy and the insurance contract are used as synonyms. The basis of their definitions is in the contracted insurance accreditation process, but despite this common root, they do experience a series of differences:

Insurance policy

  • Document in which that contract is fixed
  • Contains details of the general and particular conditions of the contract: legal terms, rights, and obligations of the parties contained in the document
  • It stipulates the sum to be paid for the damage caused.

Contract insurance

  • Agreement between the insured and the insured in contracting the insurance
  • The conditions of the contract are shown without details.
  • Through it, the insured has a guarantee to be paid by the insurer in case of damage.

How to know the insurance policy number?

The policy number, defined as the DNI in the world of insurance, can be consulted in the particular conditions of the insurance that are sent by email once the registration has been made.

In it, the insurer attaches to the client all the policy documentation and the general and particular conditions signed in the contract to consult them when they wish or if, for example, they want to change the policy.

In this way, the user can also consult the insurance policy number :

  • Consulting by phone with a commercial agent of the contracted insurance company
  • In the customer area: it is the easiest and fastest way. You save time by not having to sift through a multitude of emails.
  • In any bank bill, since it is domiciled.

Procedures to cancel an insurance policy

The client can cancel his policy by notifying the insurer one month in advance since current regulations on contracting insurance govern this.

Sometimes, suppose this prior notice does not exist, and the insured stops paying. In that case, the insurance company will continue with the renewal since it does not have any document that certifies these intentions.

In this way, the most common way to proceed with the cancellation is through an insurance policy cancellation letter that must contain:

  • Name of the insurance company and complete address of the headquarters
  • Name and surname of the insured and address
  • Place and date in which the cancellation is made
  • Policy number contracted
  • Explanation of the reasons for the cancellation, letting it be known that it is carried out within the indicated period.

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