In life, no matter how organized and futuristic a person is, unexpected events still come into existence. It can either be because one’s preparations weren’t enough or there are just some things that come out of control of anyone. This matter is taken on a more serious note when we talk about life and death situations. Life as a precious matter is valued by every one of all ages and sexes. Because of this, insurance policies were created.
Paragraph 1, section 2 of the Presidential Decree No. 612 or also known as the Insurance Act of the Philippines (Act No. 2427) states that a "contract of insurance" is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. Insurance policies come in all forms and manners to serve every person’s needs and wants. Whether it’d be for life matters, business matters or what have you, insurance companies would provide you with a policy that can perfectly suit your needs in life. Basically, insurances are purchased by different people from all walks of life in cases of unfortunate events. These happenings can come as expected or unexpectedly, anyhow, a backup plan for anyone would be a good choice. This is not only for themselves per se, but also, for their family members and loved ones. Every insurance policy purchaser engages themselves with such kinds of contracts because they want to make sure they will have a saving grace whenever worst case scenarios come into life.
Insurance policy therefore serves as life trust plans. As life is of the essence for everyone, insurance policies, must therefore serve their very purpose. It must, when the necessity calls for it, serve every clients in accordance with what they have availed and paid for.
The boom of the insurance industry in the Philippines has given every Filipino the chance to safeguard their lives and of the people dear to them. The market value of insurance policies in the country continues to rise ever since its birth. Different insurance companies are now present in the market. The problem though that came with it is the birth of black markets as well. There are, as of the present moments, existing insurance companies that pretend to be with the same interests as you have but in reality are only out there to rob you out of your lifetime savings. With the burst of different insurance companies worldwide came as well tons of different insurance agents. Some of them, legit and professional, and some of them, trained to use luring tactics to deceive you to avail of their insurance policies with the intention of just scamming you.
It is therefore difficult nowadays to ascertain whether insurance companies in town are legit or not. If before, every person would willingly want to avail insurance policies for them and their concerns, at the present moments, people would be in certain degrees of apprehension to splurge their hard earn money to such. At one point, no one can blame these people. Insurance policy customers firstly shouldn’t be at disadvantage in any way for they avail of such because they fear the upcoming of disadvantageous events.
Insurance scam in the Philippines is now a large raging issue. Unfortunately, many of our fellowmen has fallen into the trap of those deceitful insurance agents lurking around. Now, as supposed to be insured customers, what are they supposed to do after knowing that they have been scammed?
Firstly, it’s of any insured rights that they cancel such contract and have their money given back to them. Title 4 of Act No. 2427 proves this to be very true. It states among its provisions that every injured insured party in an insurance contract has every right to rescind said agreement.
Secondly, though the rescinding process would take a lot of your time and patience through its complex and long processes, the value of your money shouldn’t be at any way taken for granted. As much as life is of the essence, your hard earned salaries are of the essence as well. Basically, the reason why you try to earn a living is because you value your life, right?
Thirdly, knowing what you’re getting into is a must for everyone. Before signing anything, review every word and clause provided therein in your insurance contracts. Having knowledge of the Insurance Code can serve as a great weapon for your protection. So, the next time, some suspicious insurance agents come after you, you know the law, your rights and how to best ward them off.