Misconceptions on Insurance Payouts

There is a common misconception that insurer companies will do everything they can to avoid paying customer claims… but, that’s simply not the case. Recently, Aviva released a report showing it in fact paid out 99% of the claims it received in 2018. To get a better understanding of why the one percent did not get paid, here are the four most common reasons things turned out that way.

Not Knowing the Policy

A claim will obviously be rejected if your insurance policy doesn’t cover the type of risk that caused the loss. It is essential that you understand what your policy includes so that there are no surprises. You can call a DPM Insurance Group broker or CSR to ask questions about your policy and what is or isn’t covered.

Non-Disclosure

It is important that when purchasing an insurance policy, you disclose all pre-existing conditions and other crucial information. In many cases, non-disclosure by a client is a genuine oversight, but most insurers will not be able to accept claims for risks it was unaware of due to non-disclosure by the client.

Missing Documentation

At times, an insurer may not be able to accept a claim if it cannot be verified. It is crucial that customers submit all documentation to show their claim is valid. Documentation can be evidence of an accident, invoices, and any other documents that could be relevant to the claim so that it can be paid.

Fraudulent Claims

Auto insurance fraud costs Canadian’s approximately $2 billion every year, and is one of the reasons customers pay more in premiums. Insurance companies have a zero-tolerance approach to fraud, that’s why they sometimes challenge claims when there is reason to believe they are fraudulent.

 

Source: Aviva Canada

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777