Importance of Progess Payments

It is critical for progress payments to be made on a timely basis following insured events such as a fire.

The absence of timely progress payments may severely curtail an Policyholder’s ability to reinstate. The longer the business is out of action the more difficult it will be to retain market share. Customers may be permanently lost.

The standard Mark IV Industrial Special Risks policy contains a clause requiring the Insurer to make progress payments on the production of a report by the loss adjuster.

A Policyholder can encourage prompt progress payments by providing the loss adjuster with all reasonable information in relation to the circumstances surrounding the loss and the extent of damage.

It is important to supply all reasonable information regarding the cause of the loss and obtain a formal admission of indemnity from the Insurer as soon as possible. It is also important to present fully documented progress claims consistent with the policy to facilitate prompt verification allowing the loss adjuster to report to the Insurer.

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Author

Published with permission of Claim Solutions Pty Ltd.

Insurance Policy

Country: - Australia.

Policy Description: - Mark IV Industrial Special Risks (ISR) and many Fire policies.

Insurer: - Various.

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