One objection to purchasing insurance coverage, particularly non-life insurance coverage, is that the premium is a ‘waste’ for those who wind up making no declare.

Your premium is just not an funding and the declare is just not the return on funding (RoI). If that’s the case, the premium wouldn’t be so low! Premiums of huge numbers of individuals are pooled to cowl the loss of some. The quantity is calculated primarily based on the probability of loss as proven by previous expertise. But, for you and me, our declare represents the second of reality in an insurance coverage transaction. We, as clients, are claiming our proper and the insurance coverage firm has to fulfil its responsibility beneath the contract to make good the monetary loss.

Iffy proposition

Allow us to perceive the rationale for the widespread notion that getting claims paid by insurance coverage corporations is an iffy proposition.

Insurance coverage is a authorized contract and all the things is in writing. It’s our responsibility, as celebration to the contract, to know what we’re paying for, what we will obtain and beneath what phrases and circumstances.

In truth, this responsibility begins with due diligence earlier than shopping for an insurance coverage coverage as a result of the perfect of contracts, if they’re for the mistaken product, won’t serve our objective.

Making a profitable declare presupposes the next. That you’ve a sound insurance coverage coverage, that the loss you make the declare for falls inside the purview of the coverage, and that you would be able to assist the character, trigger and quantum of loss with documentary proof.

As well as, insurance coverage corporations verify that the declare itself is real as a result of fraudulent claims are aplenty and they’re a monetary burden on trustworthy policyholders. For ascertaining the details independently and for quantifying the loss appropriately, the insurance coverage firm could provoke a survey or investigation. It’s your duty to present them your full cooperation.

The method of constructing claims is straightforward in idea.

Take an instance. Let’s say your automotive meets with an accident on the best way to work and the bumper is badly dented.

On your declare to be admissible, your automotive insurance coverage coverage must be present and your paperwork such because the automotive’s registration certificates and the driving licence of the particular person driving the automotive on the time of the accident must be legitimate. Furthermore, the accident mustn’t have taken place whereas violating any legislation, the car ought to have been used for its said objective and the driving force mustn’t have been beneath the affect of intoxicating substances.

Medical consideration

What do you must do when an accident takes place? Even earlier than you formally inform your insurer, it’s your ethical responsibility to assist any particular person injured within the accident to get emergency medical consideration.

You need to inform the police, if they don’t seem to be already there and inform your insurance coverage firm by calling their devoted name centre quantity.

Calling your agent can be a good suggestion as he can help you with all of the directions and take over the method of constructing the declare by submitting your paperwork. Within the subsequent instalment, we will see the small print of paperwork you would wish and find out how to file your declare.

(The author is a enterprise journalist specialising in insurance coverage & company historical past)