Insurance Claims: Late notifications & the possible affects of cover

Claims notification is part and parcel of an active insurance policy; however, does it matter when the claim is notified and does it make a difference to how the claim plays out?  Let’s take a look at a motor example and see how this operates in practice.   

Early notification after an accident has occurred is essential.  The sooner an insurer is notified, the quicker they can assist with the claim and get the vehicle back on the road or replaced.   

Allianz have undertaken some research and note that early notification is essential in keeping claims costs down. 

For example, if the insured driver hits the rear of a stationary third-party vehicle at traffic lights and moderate damage is caused, as well as the third-party driver suffering whiplash, the cost of the claim, if notified on day one, is estimated at £5,000. This is compared to £11,500 if notification occurs on day 15 and if a client waits until 30 days to notify insurers of a claim, the original figure quadruples to an estimated £20,000.   

Not only can prompt claims notification assist with ensuring claims costs and experience against policy records are contained, by gathering information from a policyholder first hand, the insurer is best placed to make enquiries, offer the third party to use their approved repairer network and act on the customers’ behalf if liability is contested.  

Now, it’s all very well telling people to notify claims early and collect the relevant information at the scene, however being involved in a motor accident is not the easiest of things at the best of times and at worse it can be quite harrowing.  To then expect a driver to find a pen and paper and start taking detailed information can be seen as being unrealistic.  

To help with this exact situation, ProAktive have developed a motor claims app to help ease the process.  No pen and paper is required (just a smart phone) and the app then guides you through a process on what information is needed and, if possible, allows the collection of photographic evidence as well.  Once finished all this information is pulled together in a pdf report that is then emailed through to the ProAktive claims team who will then liaise with you regarding the reporting of the incident to insurers.   

The app not only speeds up the process of reporting but also allows the collection of all the relevant information that will be required to help assist with the claim.   The app is available free of charge to any ProAktive client so should you be interested in taking a look, just ask any staff member of ProAktive for further information. 

In summary – the sooner an accident is reported, the lower the claim cost, the better the result! 

By Peter Ryder ACIIChartered Insurance Broker

 

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