ABOUT INSURANCE CLAIMS – HOW IT WORKS AND HOW TO CLAIM

Most of us don’t buy insurance, we buy peace of mind. And most of us forget about our insurance policies until we need to make a claim. Then, suddenly, the policies we hold become super-important! Here’s some guidance about insurance claims, how the process works, and how to make a successful claim.

How the insurance claim process works

When you submit a claim form, whether it’s online or by post, it goes to an experienced claims team. Simple, straightforward claims are usually paid quite quickly, sometimes immediately. But when a claim is for a particularly large amount or is unusual in some other way, it will be investigated further.

First your claim will be reviewed to check if the event or circumstances are covered by the policy. You will need to provide proof that you are making a genuine claim. The insurer might ask for extra evidence in the form of more quotes for repair or replacement, and more fine detail. Then they’ll work out the value of your claim.

• If your claim is accepted, your insurer will arrange for payment so you can get on with the replacement or repair of your property
• If your claim is complex, the insurance company will negotiate with you to arrange a suitable time frame for settlement
• If your claim is denied, the company must give you written reasons for their decision

How to make a successful insurance claim

There are several key things you can do to make sure the claims process goes smoothly and quickly:

• Don’t delay – contact your broker or insurer as soon as you know you’ve suffered a loss
• If it’s appropriate, contact the police as soon as possible after the loss
• Ask the police for a crime report number if you have been the victim of a crime
• Fill in every relevant part of your claims form
• Give all the details the form asks for
• Provide all the paperwork requested–proof of ownership, police or medical reports, receipts and invoices
• Be prepared with quotes for repair or replacement of the damaged, lost or stolen item

UNDERSTAND WHAT YOU ARE BUYING – Did you know…?

The most important thing of all is to make sure you have a reasonable understanding of the insurance products you buy. But this isn’t always easy because insurance policies are usually written in language that many people find it hard to understand. This means many people across Asia are unclear about insurance cover, large numbers of people still drive motorcycles without licences, and plenty drive their cars without road tax, invalidating their insurance if they have any.

You can only feel confident about making claims when you understand what you are buying. Take motor insurance as an example.

Did you know that in Malaysia the law says all motor vehicles must be insured for third party injuries, and all public service vehicles like buses and trains must be insured for passenger liability? Did you know that hire and drive vehicles are not insured for legal liability when they are chauffeur-driven? Or that you’re not covered if a vehicle was being driven under the influence of drugs or alcohol?

Do you understand that if an accident happens you are required not to admit fault? Or that drivers of tour buses should never make police reports on their own without consulting someone who knows about insurance and understands how to write an effective police report?

This kind of information helps people know when you can claim and when you can’t, as well as putting them in a position of power and helping them to deal with everyday risks better.

Read the post ACCIDENTS AND COMPENSATION here, for more details.