Insurance cover is something that everyone should have in place because of the protection they provide, but there are slight problems that occasionally arise with insurance policy contracts, mostly at the points of filing for compensation insurance claims. Some of these common problems are highlighted below:
The 5 Common Problems That Arise With Filing Insurance Claims
1. Denial of policy contracts
This is not common but it remains a possibility in receiving insurance claims. People have found themselves staring blankly when they have been told that there is no record of them having any insurance policy records with the insurance company.
But most often than not, this has often happened when people have been victims of insurance frauds from fraudulent agents who pose as genuine insurance agents and representatives.
And that is why you must take cautions to ensure that you are dealing with an insurance agent that is true and honest with a background check to confirm his valid relationship and status with his insurance company.
2. Insurance Claims investigations and claims adjusters
Most people have often been disappointed with their insurance compensation offers after claim adjusters had worked on their claims and investigated their misfortunes.
Insurance companies often have their own claim assessors and adjusters and their duty is to minimize the compensation of insurance claims of any insured with a view to ensure that people are not compensated beyond their basic losses.
They work to ensure that your claims are true and fair and that they are not targeted at making any undue gains from your misfortunes, and that is why people are often disappointed when they expect, say $5,000 and they are eventually offered $2,500 – although you are still free to contest any settlements in courts.
3. Delay in payment of compensation claims
There are often delays in the payments of compensation claims and settlements, and this is not unconnected with investigations carried out by insurers to ascertain the validity of claims and the consequences of prolonged lawsuits.
Insurance attorneys tell you not to accept settlements but to contest them in courts, which is fair enough, but they don’t tell you about the waste of time. Sometimes you have to use your own money to restore things and then wait to be compensated for your expenses by your insurers.
4. Settlements and reduction of expected compensation
This has been examined under the appropriate section above. People get below their expected compensations because insurers don’t want them to receive a cent above what is required to restore their losses.
5. Litigations and legal fees
Insurance lawsuits often cost money in legal fees, and it could take off a considerable chunk of your settlement. So when an insurance attorney tells you not to accept a settlement without contesting it in the law courts, you must discuss litigation fees and services before heading out to the court and work out how this might impact on your final compensation settlement.
Side Note: One of the worst thing during a claim is waiting for the outcome. Sometimes, delays may be due to lack of communication. For example, the insurance company may be waiting for further information from the policyholder. When there is such request, the agents cannot move the claim further until that information is provided. So, check if there is anything you could do to speed things up. Remember, you are free to talk to the loss adjuster (if there is one). They have many cases open at the same time that they may have forgotten about your claim.
Also, I agree with you that first, you should try to settle with the insurer before taking the route of expensive litigation. Generally, insurance companies would increase their offer if you make a valid argument. They want to close claims as quickly as possible as well. Delays in claims are not good for insurance company reputation and they cost more money.
