Protecting your insurance policy: Do's and don'ts

Buying the right insurance policy is important to a healthy financial life, especially for your family.

But insurance is generally not fun to talk about for many people because of the perception that it is complex or even confusing.

A lot of consumers think that they have an idea how their insurance policy works and think they are informed, but they are not.

Despite that, you can make a more informed decision on your own if you really know what's going on behind the scenes. Just don't stop researching after you discovered the basics.

Here are some ways to prevent from being misled or made you believe something which is not true concerning your insurance policy:

1) Trust - Consumers must always entrust their insurance policy to people who are honest and reliant.

2) Monitor your policy - Monitor your insurance policy on a regular basis to check if there have been changes in rules or guidelines.

3) Family Friend - Always have a family member or close friend check your insurance policy in case you have questions.

4) Safety box - Important documents and insurance policies must be kept inside a box for safety.

5) Transact with legitimate insurance agents - Always check if the agent is a legitimate member of an insurance firm.

6) Ask for receipts - If you will issue checks as payment for your insurance policy, always ask for receipts in return.

7) Call your insurance company - If you have doubts about your insurance policy, visit or go the insurance firm to clear issues.

8) Monitor insurance company - Try to monitor the status of your insurance firm all the time.

Anything can happen with your insurance policy if you will not guard it with your life.

In recent published reports, Mona Tan, owner of an auto supply in Binondo, Manila, accused giant insurance firm Philippine America Life and General Insurance Co. of manipulating her 359 insurance policies worth P101 million since 1990.

Published news reports say that the businesswoman with disability had called on the Insurance Commission (IC) to revoke the certificate of authority granted to Philam Life and its agents — Leticia Ang, Vicente Ang and Ernesto Lim — “on the ground that their method of business is such as to render its proceedings hazardous to the public or to its policy-holders.” 

Tan says she had been a client of Philam Life since 1990 and bought 359 insurance policies for her family members and employees worth P101 million.

She trusted the Angs and even allowed them to manage and keep track of her policies “with little supervision.”

Tan complains she gave the two respondents full access to her records and followed their advices. She adds that the Angs duped her when they did not her options when choosing insurance products and their specifications.

Philam Life has denied manipulating the insurance policies of Tan, the insurance company said in a statement.

“In view of the nature of the insurance business, all insurance companies must maintain and foster the highest standards of ethical and professional conduct among its employees, particularly its insurance agents. Insurance companies are supposed to be the first of defense of the public against unscrupulous insurance agents,” the complaint read.

“If Philam Life truly considers us as its valued and loyal customers, it should not just ignore the case we filed,” says Tan.

Tan has also urged the IC to look thoroughly into the case.