When Is A Claim Finished?
When a Policyholder believes all costs and losses associated with an Insurance Claim have been submitted he/she is usually requested to sign a final form of release allowing the Insurer to make the final payment This signifies the conclusion of the claim.
During the course of the claim a builder may submit invoices for building reinstatement direct to the loss adjuster. Payments to the builder are sometimes made direct from the Insurer to the builder.
The Policyholder requested copies of builder’s invoices but these were not supplied.
An invoice from the builder may arrive after the final release is signed by the Policyholder.
An apology accompanied the invoice explaining that the costs related to work performed during the early stages of the claim but were not included in previous invoices.
The cost was valid but was not submitted on a timely basis due to inadequacies in the builders accounting system.
The Insurer was requested to re-open their file and reimburse the builder.
Insurers were reluctant to consider the cost as the final release had been signed and they were not satisfied the work performed related to fire reinstatement. They ultimately complied.
The late arrival of the invoice unnecessarily prolonged the settlement and cost of this claim.
Solution: -
Invoices need to be submitted on a timely basis direct to the Insured.
Author
Published with permission of Claim Solutions Pty Ltd.
Insurance Policy
Country: - Australia
Policy Description: - Mark IV Industrial Special Risks Policy.
Insurer: - Various.
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