In my last article, I mentioned some things that may make it difficult for insurance companies to accept liability.
It should however, be noted that it is not a way of escape, as many would have thought, but practical facts that need to be understood and avoided.
This will take us to today’s topic on how to get your claims settled promptly. Getting your claims settled is different from getting it promptly.
My focus is on how you can get your claims faster so that you can move on with life and business. For a business owner, the longer it takes to be reinstated the greater the loss.
Why then will you allow your carelessness to cost you so much, when this can be avoided?
It is important to state that the speed at which a claim is settled, whether promptly or otherwise, solely depends on how fast the substantiating documents are submitted.
Imagine this scenario: a policyholder who reported a claim some years back was asked to submit the substantiating documents. He was submitting in bits. How would his claim be attended to promptly with this kind of attitude?
Another major cause of delay is when there is disagreement in respect of the quantum offered by the insurer. ie. the policyholder is not accepting the amount of settlement. This may go on for a very long time and may also end up in litigation if care is not taken.
Some insurance companies experience this with their customers and it can be another reason for not settling claims on time.
Therefore, I want to advice insurance consumers to take note of the following which will assist in getting their clams settled on time.
- Be sure you are dealing with a strong and reliable insurance company. It will be better if you can lay your hands on the list of licenced insurance companies published by NAICOM.
- Ask for the substantiating documents from the right people (precisely the Claims Department) so that you are not tossed up and down. Seek the advice of a professional. A licenced/registered insurance broker will suffice.
- Understand what documents you are to submit for your claim because requirements defer from claim to claim.
- Get all substantiating documents together and submit once.
- Remember to make copies of the documents for your records. Do not be in a hurry to submit. There have been cases in which the claims documents got lost in transit and the insured never had copies.
- Do not inflate your estimate of repairs.
- Do not breach the contract conditions. Obey every rule to the letter.
- Ensure there are no discrepancies in your information. Any of such will be interpreted as a fraudulent case.
- Notify your insurer within the specified notification period stated in your policy document, preferably immediately the incident occurs.
- Do not insure the same property with two insurance companies. The principle of contribution will have to be applied. This means that the two companies will share the loss based on an agreed ratio.
- Notify your insurer immediately there is a change in the subject matter of insurance. Do not wait for a loss to occur before doing this.
- For life policies, you need to be clear with the beneficiary of the insurance proceeds. There are cases in which the insurance company had issues with who to pay the benefits to after the demise of the assured.
- Prevent further loss from occurring.
- Do not throw any damaged item away. They are referred to as savage. Let your insurer decide on what to do.
- Give the insurance company free access to your premises in case they want to inspect or investigate the loss reported.
However, if you follow the above advice and you still feel your claim is unnecessarily delayed or you are not satisfied with the services received, you are free to change your insurance company at renewal.