The Claims Process, How To Make A Vehicle Insurance Claim
After an incident that could lead to a claim the policyholder should inform their insurer or agent immediately. Emergency claim help line numbers are widely used. Claims staff will take details of the accident, check that cover is provided under the policy, vehicles involved and damage, and offer advice and guidance.
When checking that cover is in place the claims handler will check that the driver and use are authorised by the policy and that none of the exclusions are breached. They will also check that the policy is in force and the level of cover- for example, is own damage covered as in a comprehensive policy or is it third party fire and theft or third party only, and also that the premiums are paid to date.
The insurer will also need to satisfy them selves that all information contained in the proposal form was accurate and complete. For example, were all the previous accidents declared and was the policyholder the main driver of the vehicle.
Many insurers now take verbal claim forms over the telephone to eliminate the need for lengthy written forms, although this may depend on the circumstances of the accident.
If the vehicle needs repair it is recommended that it should be taken to an approved garage to expedite the repair process. These approved garages work in tandem with the insurers to provide a service, which cuts down on administration to increase the cost effectiveness and efficiency of repair. Motor policies usually cover the cost of removal of the vehicle to the nearest repairer if it is immobile.
Hire cars are often available for use during the time the vehicle is in the garage to minimise the disruption to the insured. On receiving details of the accident the insurance company will contact the garage and the insurers engineer will inspect the damage to the vehicle. He will ensure that the damage is consistent and timely with the details he has of the accident and he will authorise the garage to carry out the necessary repairs.
In the case of a non-approved repairer, it may take longer for the engineer to visit as the garage is not on his normal daily rounds, and a more detailed estimate for repair work may be required prior to authorisation. On completion of the work the insurers will recompense the repairer, less any excess payable by the policyholder, and the vehicle is released back the insured.
If serious injury or damage to property has occurred the insurer may appoint a claims investigator to look into the circumstances of the accident, take statements form witnesses and collect any evidence needed for litigation. If necessary, solicitors will be appointed too act on behalf of the policyholder and insurer. All correspondence between the parties must take place through the insurance company's nominated representative.
In the event of a total loss, where the vehicle is deemed to be beyond economic repair) the insurer will make the policyholder an offer based on the value of the vehicle at the time of the accident. This value is largely determined by the trade publication 'Glass's guide' which takes into account the purchase price, age, mileage, condition and depreciation of the vehicle. The engineers own experience factors in extras such as vehicle modifications.
The final claim payment is then negotiated between the two parties. In the event of premium being payable by installments, the remaining payments must be met for the claim to be resolved, even in the event of a total loss.
If the parties are unable to agree an acceptable settlement, the Insurance Ombudsman can be asked to arbitrate and provide a decision that is binding on an insurer.
