Insurers' Changing Attitude to Claims

As everyone is acutely aware the economy is still proving to be extremely challenging and the Insurance industry has certainly not been immune from the current turbulent times in which we find ourselves. Insurers would argue that premiums have not moved forward for a number of years. Investment income continues to be non existent and the tide of claims submitted to Insurers continues to rise unabated.

It is against this backdrop that Insurers are asked to make decisions on claims that had previously been considered borderline and which may not now receive such sympathetic consideration. In order to avoid disappointment and possible repudiation of a claim it is imperative that you comply with the various conditions contained within the policies. 

Whilst Insurers are selected in part for their ability to provide a first class claims service they cannot realistically be expected to make payments where the cover may be in doubt. It is therefore vital that you understand all the warranties contained in the policy that have been imposed upon you. If you are unsure regarding any aspect of the cover arranged on your behalf please contact our office and we will be happy to address any concerns you may have. 

On a more positive note it is our experience that where the criteria have been met, settlements are generally very fair and cheques issued with the minimum of delay.

Some of the most common concerns raised by Insurers are noted below:-

• 1. Under-insurance - It is imperative that the sums insured selected accurately reflect the correct values at risk in order to prevent reduction by Insurers of the amount claimed.

• 2. Prompt Notification of Claims - All incidents which may lead to a claim should be notified to our office with the minimum of delay as it is extremely difficult to justify a claim to Insurers a number of months after the claim had originally occurred.

• 3. Breach of Policy Warranties - The fundamental breach of a policy warranty will invariably lead to a claim being repudiated, please check the policy document and if you are unsure contact our office for clarification.

• 4. Theft of Items from Unattended Vehicles - please ensure these are either taken away from the vehicle, put in a locked boot or removed from the vehicle should the policy require this action. Most Insurers will not consider a claim if they are left on view in an unattended vehicle.

• 5. Inability to produce original evidence for large items lost or damaged - please keep receipts and documentary proof of items purchased which can be produced in the event of a claim occurring.

• 6. Unoccupied Properties - It is vital Insurers are advised if properties become vacant or there is a change in its use as this affects the risk as accepted by Insurers.

• 7. Accurate Completion of Proposal and Renewal Forms - Insurers base the premium on the information provided. Please ensure all forms are completed as fully as possible to avoid disputes at a later date.
  
  03 September 2009