Different claims, different expectations
THERE are various factors that can cause an individual to suffer a loss in the short term insurance industry.
Fire, heavy rainfall or wind can damage household and property.
Accidental damages to motor vehicles and personal injuries to individuals can also cause losses.
The compensation awarded for these types of claims is usually straightforward and hassle free.
There are however other losses which have a human element as the main cause of the loss, for example, theft or loss of property and money.
A claim for damages to the household property by water will not attract as much scrutiny like a claim for stolen household property.
The reason for the latter is that there may be an element of suspicion on the owner when such losses arise and therefore the insurer will take all reasonable precautions to satisfy himself that the claim is genuine before paying it.
A lot of claimants get offended when they are told that there has to be a break in or out of their house/ building by actual, visible and forcible means in order for their claim for their stolen property to be accepted.
We all know that there are many different ways in which thieves can gain access into one’s household but if all the options were left open think of how many claims would pour in.
The insured’s word is just not enough evidence to lodge a claim.We also have the theft of motor vehicles as part of the comprehensive motor policy.
When a vehicle is stolen unlike when it is simply damaged the insurer will, in addition to appointing an assessor, need to confirm if the owner had installed the agreed, necessary devices such as an alarm and immobiliser.
While it is necessary to pay claims as soon as possible to avoid inconveniencing the insured, the insurer may also require a specific amount of time to try and recover the stolen vehicle and sometimes investigations may prove the owner had actually played foul.
A lot of businesses and individuals insure their property under the business all risk cover because they travel all over.
Cameras, laptops and mobile phones can be insured in case they are lost or damaged but what if an individual just decides to sell one of these items and claim it has been stolen?
The insurer usually drafts the policy in such a way that the property is not covered if it is stolen from an unattended vehicle and access to that vehicle was not achieved through violent and forced entry.
Everyone wants to make money and they run different errands and it is no wonder why the cover for loss or damage to money has numerous conditions and exceptions.
Money is very tempting to steal, even to the individuals at top management level and unfortunately loss arising from the dishonesty of such individuals is not covered.
It is important to know exactly what is covered in case money is stolen in order to take precautionary measures.
The insurer will specifically outline where, how and how much money should be kept at your offices during the day and night and if those conditions are not adhered to they will jeopardise the claim.
To guard against thieves and to avoid collusion between employees there are usually specific people who should be assigned to transport different amounts of cash from your offices to the bank and if these rules are not followed and the money is lost there will not be any compensation.
In as much as an individual may know that they genuinely lost their property it is important to understand that the nature of the cause of loss will determine how the claim will be treated and if it will eventually be paid at all.