Friday 2 September 2016

PROCEDURE IN MAKING A CLAIM



CLAIM FORM

When the insured incurs a capital loss, he is entitled to claim compensation from the insurance company. A claim form must be filled when the insured is claiming compensation. This form facilitates accurate compensation from the insurance company.

 


 

PROCEDURE IN MAKING A CLAIM


For a claim in an insurance policy to be valid, the insured must follow certain procedures.
Failure to observe the instructions set down by the insurance company will prejudice the claim. Below is an example of a typical procedure for a marine insurance claim in the event of loss or damage to cargo. The principles involved are essentially the same for other types of policy as well.
1. The insured must inspect the goods before taking delivery if the loss or damage is apparent, or as soon as the loss or damage is discovered.
2. The insured must then inform the insurer immediately, and request for a survey of the goods by the underwriter's agents or the surveyors named in the policy or insurance certificate. It is important that the condition of the goods and its packing must not be tampered with until the surveyor arrives. However, the insured may take steps to ensure that there is no further damage to the goods.
Note: In the case of a claim under other types of policies, say, motor, the insured must inform the insurance company immediately of the event of the loss. He must also make a report to the police within 24 hours after the accident. The police will make an independent report after its investigation as to the probable cause of the event. The vehicle will have to be towed to a workshop approved by the insurance company.
3. The insured must also request ship-owners, other carriers, forwarding agents, Customs, the Port Authority and other bailees to be present for a joint survey. It is their responsibility to certify any loss or damage to preserve the insurance companies' rights against third parties. If the latter is found to be guilty of negligence, the insurance company can then sue them for damage or loss incurred.
4. Notice of the loss or damage must be made in writing to the bailees within the time limit prescribed.
5. Together with his claim form, the insured must submit certain documents to substantiate his claim:
(a) to prove insurance - original copy of the policy or certificate of insurance (b) to prove ownership
(i) bill of lading (for cargo)
(ii) vehicle ownership card (for motor) (iii) charter party
(c) to prove value
(i) invoices
(ii) packing lists
(d) to prove loss/damage
(i) survey report
(ii) landing/general survey report
(iii) sales receipt
(e) to enable the insurance company to make claims on third parties
(i)  the police report

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