September 16, 2019

HOW TO PREPARE AN INSURANCE CLAIM.

HOW TO PREPARE AN INSURANCE CLAIM.
Insurance claim, in simple words means to demand the amount insured. A claim is a formal is formal request by an insurance Company asking for payment based on the terms of the insurance policy.
Once received the insurance Company reviews the insurance Claims for their validity and then approves and pays out the insurance amount.
In life insurance contrast, the insurance claims can either be claim by Death or Claim by maturity.
1. Claim y death raised due to the death of the life assured during the terms of the policy . The insurance company Scrutinizes all documents submitted y the legal heirs of the deceased insured before paying the insurance amount. Once the insurance claim is paid the insurance contract comes to an end.

The General claim procedure in the case of death claim is as follows.
The nominee or the relative of the deceased policy holder needs to inform the insurance company about the of the insured person. Information such as name of the insured the date and place of the death the cause of death the policy number e.g. needs to be provided.
The claimant needs to submit the death certificate of the insured issued by an appropriate authority; the claimant also needs to provide all the necessary documents to prove that he/she is the genuine nominee entitled to receive the insurance amount.

The insurance company then verifies all the documents submitted to it and makes the payment of the insurance claim to the claimant.
Claim by maturity is payable to the insured at the end of the term of the contract of insurance e.g on the maturity date, The insured person needs to submit the following documents for settling the claims.
Original insurance policy document duly stamped and signed discharge form any other documents as required in the insurance contract. Also the properties insurance applies to both businesses as well private householders. The principle of utmost good faith is applicable to a life insurance contract Marine insurance contract D All types of insurance, The insurance principle starting the amount of compensation payable should be exactly equal to the financial loss suffered by the insured is

The insurance principle stating that the amount of compensation payable should be exactly equal to the financial loss suffered by the insured is:
A Insurable interest B Utmost good faith C Indemnity D Abrogation
The principle of insurance which establishes that the actual loss should be shared among all the insurers is the principle of contribution. Also the principle of insurable that interest according to his principle, the insured must have some pecuniary interest in the subject matter of the insurance contract
Principle of Abrogation, According to this principle it is the right of the insurer to stand in place of the insured after the settlement of a claim as far as the right of the insured in respect of the recovery from an alternate source is involved.
(A) LET US SEE THE PROPERTY INSURANCE AND GUARANTEE INSURANCE POLICIES.
Here we will state and describe general third party insurance and how to describe the average clause this will help us how to to know very well the property insurance and Average clause.
1. Property insurance
Property insurance is every type of insurance that protects property. Property is subject to various types of natural and unnatural risk. Property insurance covers a broad range of items from goods in transit or in store to building or contents e.g. jeweler, paintings, furniture etc. Property insurance applies to both businesses as well as private householders. It covers damage and losses caused to property on account fire, theft, and hail.

2.Third party insurance
Third party insurance policies provide protection against the actions of another party. In third party insurance, the insured takes the insurance cover from an insurer to protect him from any claims made by a third party.
A popular example is third party motor insurance which provides protection to the owner of the vehicle from claims made by a third person who was injured in the accident. Although the contract is between the owner of the motor vehicle and the insurance company, the insurance company under third party insurance contract undertakes to indemnify the third party for losses caused by the insured because of the motor vehicle owned by him. Thus, the insured passes on his liability to compensate the injured person to the insurance company in exchange for a premium.
3. Average clause
Average clause is a term associated with property insurance. Average clause describes a formula that an insurance company uses in order to calculate the amount payable for a claim related to the replacement cost of a property covered by an insurance policy.
Where the property is not insured for its full replacement value, then in the event of any loss to the property, the insurance company only pays the insurance amount in proportion to the sum insured.
For example, suppose the replacement value of an office building insured by a company is Tshs90,000,000 and the company took insurance for tsh 45,000,000 i.e. equal to 50% of the total replacement value of the property. In this case, if there is any damage to this insured property worth say Tshs20,000,000 then the insurance company will only accept the claim to the extent of 50% of the damages. In other words, although the total claim of Tshs20, 000 ,000 is less than the insured value of Tshs45, 000,0000, still the insured party will be able to recover only 50% of the actual loss from the insurance company.
Thus, where the sum insured is less than the replacement value of the property, in the event of claim for damages to such property, the average clause will apply whereby the claim will be reduced proportionately.
State whether the following statement is true or false.
Property insurance applies only to private householders.

Thus, where the sum insured is less than the replacement value of the property, in the event of claim for damages to such property, the average clause will apply whereby the claim will be reduced proportionately.

Leave a Reply

Your email address will not be published. Required fields are marked *