Don’t expose yourself to possible rejection of your insurance claim
Under insurance is possibly the biggest reason for partial pay out of claims, if not outright reject
So you pay your insurance premium every month and your sleep well knowing that if you have a loss, you will be compensated. Right? Usually!
Always provided that you have met your obligations to the insurer.
Mandy Barrett of insurance brokerage and risk advisors, Aon South Africa explains that there a number of common mistakes and omissions that can lead to rejection of a claim by insurers.
“It’s essential to study the detail and provisions of your policy and discuss any concerns you may have with your broker to ensure that you have a smooth claims experience should you need to claim,” says Mandy.
Common reasons for claims rejection, of your claim being less than expected include:
- Late notification of a claim – you must notify insurers within a specified time frame of any accident or incident which could give rise to a claim, the timeframe is usually around 60 days but it is wise to check your policy wording
- Non-compliance with security requirements – most motor policies for instance require you to install approved immobilisers, alarms and sometimes vehicle tracking devices depending on various factors. Check your policy conditions and endorsements in this respect and keep any fitment certificates in a safe place.
- House Content Claims – if you don’t comply with your policy conditions on minimum security (for example, a burglar alarm, burglar bars and security gates), or should your alarm fail to activate during a burglary, your claim could be repudiated.
- Insurable interest in the insured property -you must have what’s known as an “insurable interest”, in other words a financial interest in the insured asset. The assets of family members or independent children who no longer live with you or property owned by your business won’t be covered under your personal policy.
- Material change in the risk – insurers must be informed of any “material increase” in the value of the risk they are covering. For instance, with home prices and building costs escalating so quickly, the replacement value of homes has increased. Even if you simply make alterations to your home you will almost certainly add to its value and, for that matter, there could be risk of damage during construction.