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Nearly half of canadians lack knowledge of their insurance contracts, according to a survey



May 22, 2018 09:45

Photo : Freepik

A survey conducted by the firm Léger for the account of the Chamber of damage insurance and of the Chamber of financial security shows that nearly half of Quebecers are unaware of their insurance contracts. What’s more, 80 % of them do not read or only a portion of their insurance contracts. A situation that the Rooms qualify as ” special concern “.

“At the time of the parliamentary study of bill 141, which raises significant concerns for the protection of consumers of insurance products, this new survey reminds us of the great complexity of our sector and the need for support of the Quebecers to make informed choices “, underlines Maya Raic, president and ceo of the Chamber of damage insurance.

Exclusions unknown

Also, the Rooms say that a large proportion of the people surveyed can’t identify what is or is not an exclusion. The study reveals that 47 % of the respondents are unaware of all the exclusions of its insurance contracts. In fact, 19 % of respondents say they know that sewer backups are not included in the basic coverage of home insurance policies.

“Understanding exclusion techniques and their impacts may not rest solely on the shoulders of consumers, who have to rely on insurance representatives certified to guide in the process of buying life insurance,” explains Marie Elaine Farley, president and chief executive officer of the Chambre de la sécurité financière.

Responsibility of the consumer

Nearly two-thirds (61 %) of consumers have not notified their representative in damage insurance of major changes in their residence, supports the survey. The Rooms remind us that the brokers and representatives have the obligation to take the means necessary for the police to respond to the needs of customers. They say, however, that the bill 141 removes this obligation if the insurance premium is changed and this responsibility will then switch to the shoulders of the consumer.

“This situation is potentially dangerous : according to the survey, two out of three Quebecers could find themselves in a situation of under-insurance if the bill 141 was adopted as it stood “, tell the guest Rooms.

72 % of consumers attached to their representative

The survey also reveals that 72 % of consumers prefer to get advice from a certified professional rather than a robot using artificial intelligence (2 %), or an agent of télémarkéting (1 %). The Rooms assert that the draft act 141 opens the door to the provision of advice by persons who are not certified.

The survey was conducted on the Web with 1 035 Quebec.

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