What is a good insurance policy?
The essence of an insurance policy is its “conditions”; therefore, a good policy for the insured must offer “broad coverage, less restrictions and competitive premium”. Broad coverage can be measured through 2 ways: quantity and content. Quantity is easy to tell. For example, a motor insurance policy with liability limits of 1,000,000 baht/person in case of an accident with casualties surely offers broader coverage than that with only 500,000 baht/person. Broad coverage in terms of content, however, is a lot more complicated. For example, a theft insurance policy for gas station is stated that it covers “………….. and engine oil” offers less coverage than the one stated that it covers “………….. and oil”. Likewise, a marine insurance policy that is stated that it covers “when all rice products have already boarded the vessel” offer less cover less coverage than the one stated that “when rice products have already boarded the vessel” because the vessel may be sunk when a part of rice products have boarded. The problem is in case of the policy stated that it shall cover when all rice products have already boarded the vessel, whether the insurance company will pay for the damages or not. Thus, the word “all” in this case is significant when the claim for damages is negotiated. Even for non-insurance contract, such as in a normal sales contract, should the buyer pay the seller if something goes wrong? For example, the buyer orders the seller to install a refrigerator on the second floor, but the seller accidentally drops the refrigerator on the first floor. Should the buyer pay the seller in this case?