Sherry Sibeko, Executive Head for Personal Lines at Miway Insurance, lays out the questions that every South African should ask before taking out an insurance policy.

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, having easy-to-understand insurance policies is a fundamental right supported by consumer protection laws.

Understanding your 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 you make informed decisions, here are 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 you submit a claim, 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. So asking directly, “What is excluded?” forces the insurer or broker to highlight 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 you assess the true cost of your 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 you confidence that the insurer will respond fairly and efficiently when you need support the most.

This will also go a long way in helping you understand why claims may be delayed, partially paid or rejected.

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 – whether you can change your cover, adjust your excess or cancel without penalties – helps you make decisions that suit your changing needs.

Asking simple questions is not about mistrust; it’s about empowerment. When you understand what you’re signing, you are far better positioned to protect yourself, your family and your livelihood.

This post was based on a press release issued on behalf of Miway Insurance.