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.
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.
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.
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