Insurances serve great benefits to a person in a time of financial hardship. When things do not go as expected and a disaster occurs, leading to a substantial loss covered by the insurance policy, the person can claim with the insurance provider. However, policyholders should remain compliant with the terms and conditions of the policy. The claim is lodged to activate the insurance company’s response, and if the company accepts the claim, it will be bound to fulfill the promise as mentioned in the policy.
It may be done through covering legal fees, repairing or replacing damaged items or property, or through payment. For legal advice, you may consult an insurance lawyer Perth. This blog discusses all the details that you must know about making a claim.
How Much Do General Insurers Pay In Australia?
In Australia, the average amount that the general insurers pay each working day in response to the claims made by the policyholders is $135.9 million. Only 3.6% of claims are declined, which makes Australian insurance companies highly reliable. Here we share two statistics that will further confirm this fact.
What Do We Mean By A Claim?
When you lodge a claim on an insurance policy, you officially notify the insurance provider about a loss or damage you have suffered, which is believed to be covered by the insurance policy. Through a claim, you are also requesting an action.
You can consider taking legal assistance from a certified insurance claim lawyer from Perth to lodge your claim smoothly.
When Will Your Insurer Advice If It Accepts Your Claim?
After you lodge your claim, your insurer will assess it. Officials may have further questions about the claim, and you have to respond to those queries. If you think you can answer them, do it as soon as possible. If they seem difficult to answer, let your insurer know that. Your insurer should also let you know how long it will take to assess your claim.
According to Clause 9 under the General Insurance Code of Practice, the insurance company may not satisfy all the usual timelines if there are a significant number of claims. If the claim is pretty complex, the insurer may want to make negotiations to arrange a different time frame for your claim.
On the other hand, the usual timeline according to Clause 7 under the Code is as follows.
However, these two conditions will not apply if there is an urgent financial need.
In general, insurers are required to provide updates on the progress of assessing the claim at least every 20 working days. If you wish, you can also call your insurer to check on progress and get updates on timelines.
If you have an urgent need for money, the insurer must be informed about it through a written letter.
What To Do If You Have Not Received A Decision From Your Insurer About Your Claim?
Sometimes it may occur when you have submitted a complete claim but not have received a positive answer from your insurer. Further, your insurer may keep saying that your claim is still under process or they need more information every time you call them.
According to Clause 7.9 under the Code, an insurer is liable to respond to a claim within 10 working days of receiving it. If they really require any further information, they must be notified within that 10-day timeframe. They must outline the following points, including:
Suppose they are not making any decision and not asking you for further information or not telling you the reasons behind a delay. In that case, you may consider sending a letter to the insurer.
If they do not even respond to your letter, you should send a complaint letter to the Insurance Code Compliance Committee. Usually, a written complaint helps a policyholder get the response. But if this step is also unsuccessful, you will have no option but to refer the issue to the Australian Financial Complaints Authority (AFCA).
Legal advice may be essential in all the stages involved in this process. Commercial litigation lawyers in Perth can also help you in this case.
Certified commercial lawyers Perth can serve in a range of law areas, including insurance claims. You can easily find their contacts on the relevant websites or from any law firm. Whenever you choose to hire a professional, make sure you check their background.
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Commercial lawyers Perth team did a great job for my settlement. Very professional and friendly lawyers in Perth . My queries were always answered and were just a call away. Highly recommended commercial lawyers in Perth , Western Australia
Commercial Lawyers Perth WA did a great job for my settlement. Very professional and friendly lawyers in Perth. My queries were always answered and were just a call away. Highly recommended commercial lawyers in Perth, Western Australia