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Personal Lines Insurance
Sunday, March 1, 2009
Making no sense

This is a plea to all financial advisers, but especially those that deal in the short insurance personal lines fields. It makes absolutely no sense whatsoever for clients to buy insurance from vendors of third party services such as vehicle financing, cell phone companies and furniture dealers. There is a direct conflict of interest between selling a product– hi fi equipment of a motor vehicle , say - to a customer and then trying to leverage the deal with additional commission sources such as insurance. Aside from the dangers of duplication of cover, clients will invariably end up with inferior, restrictive cover, and still be at risk for other possessions that are not assessed.

Instead they can acquire better quality of cover at a lower price from an independent insurance broker. Please review all your clients’ insurance arrangements and especially enquire after any finance deals, cell phone contracts and so on that they might have arranged, and see if they have agreed – either knowingly or in ignorance – to paying extra monthly deductions for some form of limited insurance cover. For example, if they have bought hi-fi equipment, or subscribed to the Multichoice DSTV service, they may have unnecessarily duplicated their insurance cover. 

Copyright © Insurance Times and Investments® Vol:22.3 1st March, 2009
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