Insurance is defined as a contract signed between an insurance company and an individual or a business entity. This contract is usually in the form of a policy that lays out the terms and conditions of the insurance. The individual or the business entity purchases insurance to protect itself from various unforeseen circumstances- such as financial loss, sudden death, medical ailments, accidents etc. Examples of individual insurances include car insurance, health insurance, etc. Whereas, examples of insurances purchased by business entities include cyber crime insurance, professional indemnity insurance, marine insurance, etc.
There are certain key terms associated with insurance policies and it is important to understand them before purchasing an insurance policy. An explanation of some of those terms are provided below:
● Premium- The cost of purchasing insurance is referred to as its premium. The premium is usually paid on a monthly basis.
● Policy Limit- Policy limit is the maximum amount that will be reimbursed by the insurance company when the insurer faces any loss.
● Deductible- Deductible refers to the amount that the insurance holder will have to pay on their own. The deductible amount is not paid by the insurance company.
Things to keep in mind while making an insurance claim
Insurers should undertake the utmost care while filing an insurance claim. It is important to follow certain provisions while filing them. If they are followed, the insurer will be successful in making their claim and no situation will arise where their claims will get rejected. Some of those provisions are mentioned below:
● Make the insurance claim quickly– It is imperative to make the insurance claim as early as possible. The insurance policy might have a long duration for making a claim. However, it is always advisable to make the claim at the earliest. This is because the information which is to be provided in the insurance claim will be clear in the insurer’s mind initially. Hence, if an early claim is made, the chances of the insurer making any factual mistake in their insurance claim will be minimised.
● Cross-check the policy bylaws- The insurance policy buyer must carefully check the terms and conditions of the insurance policy. It is important to familiarise oneself with what are the things that are covered under the insurance policy, whether there are any special clauses of the insurance policy, etc. Cross-checking the policy document is crucial while purchasing the insurance policy, as well as while filing an insurance claim. For instance, insurance can be claimed for reimbursing repairing costs. In that situation, the insurance buyer must check whether there is a provision of getting the repair work done by someone who is approved by the insurance company. In case such a provision exists, and the insurance buyer does not abide by it, then, the insurance claim will be rejected.
Such approval also needs to be verified by those who are claiming health insurance. It is necessary to ensure that the insurer has the insurance company’s consent before approaching a private doctor for medical treatment. For health insurances, insurance companies have contracts with private hospitals/clinics and doctors. Hence, it is important for the insurer to get their treatment done in those approved clinics only, or else, their insurance claims will not be reimbursed.
● Get the details correct- While making an insurance claim, it is very important to provide the correct details to the insurance company. For example, let’s say the insurer’s car has crashed and he/she would like to make a car insurance claim. In this case, it is important to mention the details of the accident; when and where it took place, how the car crash took place, details about the other party involved in the crash, the amount of money that is being claimed from the insurance company under the insurance policy, etc. The information provided must be authentic since it would be verified by the insurance company before it goes on to settle the insurance claims.
It is also essential to provide the information for the insurance claim in a clear language without any ambiguities and/or exaggerations. The clearer the insurance claims made, the easier it would be for the insurance company to verify and process those claims and initiate the reimbursement process at the earliest.
● Consider speaking to the insurance company broker- In certain cases, individuals or businesses, purchase insurance through a broker or an agent of the insurance company. It is a very sensible idea to take their help while making an insurance claim. They are people who are well-versed with how insurance policies work, and they will help make the insurance claims in a proper way so that the claims do not get rejected.
Things to keep in mind while claiming the insurance on a damaged property
Insurance policies are also purchased for important property and other related valuables. There are certain things that must be kept in mind while claiming those insurances. Some of them are as follows:
● File a police complaint immediately- If the damage to the property has been caused due to burglary, vandalism or an accident, it is useful to file a police complaint at the earliest. This especially holds true for car accidents in which deaths or severe bodily injuries have taken place.In the police complaint the details pertaining to the accident; when and where it took place, details of the third party involved in the accident, etc must be mentioned. A copy of this police complaint has to be attached to the insurance claim form and provided to the insurance company.
● Document the damage properly- To increase the chances of getting the insurance claims accepted, it is advisable to document the damage properly. Documentation can be in the form of taking pictures of the accident site and pictures of the crashed car. Apart from this, the details of people who witnessed the accident should also be recorded. For damage to other forms of property, photographs of the destroyed/ vandalised property must be taken.
● Do not leave the accident site- In case of a car accident,the insurer must not leave the site of the accident, neither should he/she take away the car from there. If the car is removed prior to the police and the insurance company is informed, there is a chance that the reimbursement amount received will be less. It can also be possible that the insurance claims of the insurer will get rejected.
Your insurance broking company would be able to help you to take the correct and prompt action. Get in touch with your insurance broker immediately. PlanCover can help you understand the details of all the processes of insurance, from planning, buying to claims.