Saturday, December 20, 2014

7 Reasons Why Insurance Companies Don’t Pay Claims

7 Reasons Why Insurance Companies Don’t Pay Claims


I hope that you
have never been in the position to have an insurance claim refused.  If you have, it was probably for one of the
following reasons:


1)The claim was
outside the scope of the policy.
                Your policy will only cover the risk specified.  It is important to consider all your risks carefully.  Those you cannot manage or eliminate, you
need to insure.
2) You failed to
comply with the terms of the policy.
                There will be certain conditions you will have to meet in
order for an insurance company to underwrite your risk.  No company is going to insure a building that
has open fires burning in the centre of a warehouse full of flammable
stock.  An extreme example I know but it
is important to know that your policy is not being invalidated by something you
are doing now.
3) Your policy does
not include consequential loss.
               
Make sure your policy covers all the risk of any
incident.  Particularly consider your
ability to continue trading after a major incident.  Your buildings and contents may be insured
but how will you remain in business if you have no means of doing business
anymore?
4)You gave false
statements when you applied for insurance.
                Your insurance company will only insure what is real.  Lie and the policy will be void.
5)You failed to pay
your premium on time.
               
Sounds obvious but you are not insured unless you pay the
insurance premium.  Yes, you may feel
being a few days late does not matter but if you have not paid your premium you
are simply not insured.
6)You take too long
to report the claim.
               
Make the claim as soon as possible. 
7)You failed to
disclose all relevant facts.
               
Over 11 per cent of corporate insurance buyers have had a
claim challenged on non-disclosure grounds in the last two years. Insurance
policies are one of only a few contracts in which uberrima fides “utmost good faith” applies.  It is important you inform your insurance
broker of all relevant information.
I’ll help with any
claims, ensure the paperwork is correct and with the insurance company in good
time.

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