By Sherry Sibeko, Executive Head for Personal Lines at Miway Insurance

Having a clear grasp of your insurance policy is essential to making informed financial decisions and safeguarding your rights as a consumer. In South Africa, this understanding goes beyond good financial practice, it is a fundamental right supported by consumer protection laws.

Understanding a policy is not just good financial hygiene, but a basic right protected under South Africa’s consumer protection framework. Too often, we see policyholders misunderstanding the basics of insurance terminology such as premiums, excesses, exclusions and policy limits. This can create a false sense of security and lead to disappointment at claim stage.

To help consumers make informed decisions, Sherry Sibeko, Executive Head for Personal Lines at Miway Insurance outlines five simple questions that every South African should ask before taking out an insurance policy:

1. What exactly am I covered for?

This question goes to the heart of the policy. Many people focus on what the policy promises to cover, without paying equal attention to exclusions. Understanding both sides upfront helps avoid unpleasant surprises when a claim is submitted and ensures there is no mismatch between expectations and reality.

“Exclusions are rarely hidden, but they are often spread out, written in technical language, and placed after pages of benefits,” notes Sibeko.  “So, asking directly ‘what is excluded?’ forces the insurer or broker to surface the most important limitations, in plain language.”

2. How much is the premium, and how much excess will I pay if I claim?

The monthly premium determines affordability, but the excess determines accessibility at claim stage. A policy may look affordable on paper, but a high excess can make it difficult to claim when something goes wrong. Knowing both figures helps policyholders assess the true cost of their cover.

3. How does the claims process work?

Understanding how to submit a claim, what documentation is required and how long the process typically takes is critical to give policyholders confidence that the insurer will respond fairly and efficiently when they need support most. “This will also go a long way in understanding why claims may be delayed, partially paid or rejected,” adds Sibeko.

4. Are there any conditions that could invalidate my cover?

Insurance policies often come with conditions, such as security requirements, disclosure obligations or rules around how an asset is used. Being clear on these conditions helps policyholders avoid unintentional breaches that could lead to a rejected claim.

5. How and when can I change or cancel the policy?

Understanding how flexible your policy is helps you make decisions that suit your changing needs. Whether you can change your cover, adjust your excess, or cancel without penalties.

“Asking simple questions is not about mistrust, it’s about empowerment. When consumers understand what they’re signing, they are far better positioned to protect themselves, their families and their livelihoods,” Sibeko concludes.