Today, the most convenient way for customers to purchase insurance is to buy the so-called boxed product. “Boxed” insurance implies an insurance policy with a fixed sum insured and a set of risks that does not require filling out applications and providing additional information about the insurance object.
To date, insurance companies offer to arrange “box” insurance of property, civil liability, accident and a number of other types. Such an insurance product does not require time-consuming processing. It can be purchased both through the sites of insurers, and in the offices of partners (chain stores, banks, car dealers). But, as often happens, the easiest way is not always the most reliable. When choosing a boxed product, it is very important to know under what conditions a contract is proposed for conclusion, otherwise the stereotyped “boxed” insurance may entail serious problems with payment in the event of an insured event. Consider the main nuances that you should pay attention to when choosing “boxed” products.
A clear drawback of “boxed” insurance is the lack of an individual approach to assessing the degree of risk. This, of course, simplifies the work of insurers and reduces administrative costs, but entails the establishment of a rigid framework in determining the object of insurance or the person to be accepted for insurance. And not everyone who wants to purchase such a policy is suitable for these conditions. As a rule, when selling a “boxed” product, the client is not informed of the existence of such restrictions. The client finds out about them only upon receipt of a refusal of payment. The first thing you need to determine is whether you or your insurance object are subject to the terms of the contract.
For property insurance (apartments and country houses), as part of “boxed” products, a restriction is usually indicated on the year of construction or the age of the building (for example, not earlier than 1970) and on the material of walls and ceilings (as a standard, apartments with wooden or mixed ceilings). Also, for some insurance policies from the list of objects accepted for insurance, property that has been leased out or with unauthorized redevelopment may be excluded.
When insuring civil liability, it should be noted that practically all “boxed” products provide for a refusal to pay if the damage is caused by repair work.
In case of “boxed” accident insurance it is necessary to pay attention to age restrictions. Constraints on professional activities are always included, and not always obviously associated with a high degree of risk. There are restrictions on sports: for example, riding a motorcycle, skiing and many others (including playing sports at an amateur level). Also, all accident insurance policies include a list of diseases in the presence of which at the time of concluding the policy a person will not be considered insured. Similar exceptions are provided for in classical insurance, but only if the policyholder did not inform about them during the execution of the contract. Otherwise, the tariff will be increased and the policy will be valid.
Defined Insurance Amounts
Another important disadvantage of express insurance is fixed insurance amounts, which are often disproportionate to insured risks and objects of insurance. Box insurance policies establish low insurance amounts, which in case of loss do not provide the client with significant financial assistance. The tariff for “boxed” products is often higher than for individual insurance. Therefore, many insurers in the policies indicate the minimum insurance amount to reduce the cost of the policy and thereby make this product more attractive. When choosing the insurance amount for property below its real market value, it is worth considering that the insurance contract may provide for a conditional payment .
When deciding on the purchase of “boxed” insurance, it is necessary to proceed from the “price – quality” ratio. Thus, the insured amount for property insurance should ideally cover the real potential damage or provide real financial support in a difficult situation. Otherwise, the meaning of insurance is lost. When insuring a country house, it is advisable to choose the sum insured for structural elements equal to the market value of a similar house. And when insuring an apartment where the risk of complete structural loss is low, it is better to pay attention to establishing a sufficient sum insured for insurance of interior decoration. It is important to pay attention to the existence of a franchise, which can significantly reduce the already small insurance amount set in the policy. When choosing the insurance amount for accident insurance, you need to evaluate
When assessing the established insurance amounts, one should pay attention to the limits of insurance payments. Almost always, limits on payments are set for movable property (not more than a certain amount per unit of property). Therefore, it is impossible to insure expensive movable property as part of a “boxed” product, unlike insurance according to inventory under classic insurance. Limits on insurance payments for elements of interior decoration (percentage of the total insurance amount for each element of decoration) are always set, but a similar practice occurs with individual insurance.
Unlike classic insurance, which clearly indicates the start and end dates of the insurance period, the insurance terms can be “blurred” in the boxed products. In the simplest case, the beginning of the insurance period is the date of activation of the policy through the insurer’s website or the date of payment of the insurance premium. But it is also possible that the policy states that the insurance cover applies to events that occur after a certain period of time (7-15 days) from the date of payment or activation of the policy. By the way, the period of activation of the policy is also limited. Insurance may extend to events that occur within a specified time (for example, 12 months), but the policy may stipulate that the contract expires after the first insurance event.
To get acquainted with all the conditions and nuances of the “boxed” policy listed above, you need to show some persistence or become the owner of such a policy. In this case, if you find that you do not fit the terms of the insurance program or the prescribed conditions do not meet your requirements, it is almost impossible to refuse the policy and return the paid insurance premium. If the insurance conditions do not provide for a period during which you can return the insurance policy, in the event of cancellation of insurance at the initiative of the insured, the norm of article 958 of the Civil Code of the Russian Federation applies. It allows not to return part of the premium in case of early termination of the policyholder from the insurance contract.
In general, “boxed” products are a completely normal insurance tool for protecting one’s interests, which can be quickly and easily acquired without leaving home. The main thing is to make sure that the contract will act in accordance with expectations.
When placing “boxed” products on the Banki.ru website, they will always be accompanied by a description of the product developed by the portal staff with an objective statement of the key nuances of the insurance contract.