WHY INSURANCE firms do not PAY CLAIMS
One burning issue within the mind of MEan|a median} person during this a part of the planet once it involves insurance merchandise purchase is: “Will the nondepository financial institution pay me after I have a claim?” This question is as recent as insurance itself. I recall instances after I got to speak with individuals concerning insurance and therefore the have to be compelled to insure, the response i buy from a number of them is that the same as higher than. several have labelled insurance firms as fraudsters! This diary is written to correct this notion and hopefully clear all doubts.
I am progressing to take five reasons during this half and conclude with the remaining five reasons within the second half.
The following square measure the primary five reasons why your claim won't be settled:
1. Unpaid/Unremitted premium
2. dishonest Claim
3. Incomplete Documentation
4. interest problems
5. pretend Insurance cowl
Unpaid / Unremitted Premium: in step with the principle of insurance that is additionally true within the principle of contracts, premium (which is thought within the law of contract) should be paid before for the contract of insurance to be valid. this can be the foremost vital facet of associate degree insurance cowl, while not that there's no cowl – NO PREMIUM, NO COVER! every now and then agents, when taking over a policy on someone’s behalf may fail to remit the premium to the nondepository financial institution before a loss. However, once such a loss so occur, the primary factor associate degree nondepository financial institution can check is that the premium standing of the policy. If the premium had been settled before the claim, the claim stands a high likelihood of being paid all alternative things being equal. However, if the premium wasn't paid before the loss, repudiation (rejection, refusal…) is that the remedy. you'll ask: however do I avoid this? I’ll tell you. To avoid finding yourself during this reasonably embarrassing scenario, pay your premium in real time you get the policy or pay a deposit premium instantly (in case of payment in installments) and followed by the balance payment. Not solely that, if you obtain the policy through associate degree agent, be deliberate, issue your premium cheque within the name of the nondepository financial institution on your insurance paper and not the agent’s name.
Fraudulent Claim: insurance is taken for associate degree unpredictable prevalence i.e. the event, occurrence, loss or outcome should be probable (under probability). If someone as an example, take up a fireplace insurance and decides to line his house burning, it is a criminal act known as arson! Or willfully harm his car(in the case of motor insurance) so as to come back for a claim - it's fraud! once associate degree nondepository financial institution is ready to trace a claim to fraud, the claim are disowned mechanically. I recall a recent case with one in every of our shoppers. This man according that his automotive was engulfed in flames from his engine whereas in motion, that in step with him resulted within the total loss of the vehicle on the road. when documentation the workplace sent Maine resolute examine the burnt vehicle. Armed with my camera, I taken off on what eventually clad to be a wild goose chase. What happened was that, when hairdressing the world presupposed to be the spot of the accident while not success, i made a decision to raise some policemen therein space. astonishingly, they told Maine that no such accident occurred therein space at the time I gave them. Conclusion is that there was no such accident to the vehicle, the insured according a dishonest claim that crystal rectifier to the claim being disowned.
Incomplete Documentation: if you're filling in an exceedingly claim be able to flip all told documents. as an example, proof of possession, images, purchase receipt/invoice, estimate of repairs etc within the case of motor claim. And within the case of non-public accident claim study, receipt of payments etc square measure necessary. i'll trot out this subject in my forthcoming blog: Documents required that may build your claims valid. Watch out! check that your documents square measure so as and complete while not that your claim are delayed unnecessarily as a result of insurance relies on documentary proof. therefore take my recommendation, tender each document as proof, be patient. Another shopper of mine reportage a Workmen’s Compensation Claim was told to produce the study, receipts and each alternative document to indicate that there was associate degree accident on one in every of his employees. What he sent was simply an image of the victim on a single bed, once we fire the opposite documents he became furious and aforesaid it had been rubbish! until date the claim remains unfinished, if he decides to tender the documents the claim are treated any. therefore document like hell.