(Duties after an accident or loss)
After a loss occurs,
here are some important obligations you have to meet before your insurer pays
for a loss. The duties help an insurer to determine whether payment is due or
how much it has to pay.
Notification
You must contact the insurance company with accident details.
Notification may be through an agent and it should include the identity and
addresses of any injured persons and any witnesses. Quick notification starts
the entire claims process, and it helps the insurer to control claim expenses.
Assisting the insurance company
You must help the insurer with the claim's investigation, settlement
or with its defense against any claim. Helping includes sending the company copies
of any accident-related material. Assistance also means participating in physical
exams and interviews under oath. You’re also required to give your insurer access
to all records (especially medical) related to the accident and a proof of loss
statement (document that has all loss details and information about the lost property).
Repeated requests for help or information may strain relations between you
and your company. While companies have the right to thoroughly investigate losses,
it should balance its right against your expectation of fair treatment and privacy.
Preserving the damaged property
after a loss
Let’s demonstrate this important condition with an example.
Tina returns home early in the morning in her convertible and hits a large landscape
rock that's in front of her house. The damage is minor, but the impact causes
an alignment problem that makes it impossible to close the convertible top. Instead
of moving the car into the garage or covering the car, Tina leaves it in the driveway.
It sits there all day, sitting exposed to a downpour that severely damages the
interior and the car's electrical systems. The car now has to be towed to have
the damage inspected when, originally, it could have been driven. Tina’s inaction
complicates a once simple claim.
Being too quick can also cause problems. A claimant who repairs or disposes
of damaged property before an insurer examination has seriously breached the
insurance contract. This breach could result in an insurer refusing the claim.
If you have any questions, your insurance agent is an excellent choice to
help you properly understand your insurance policy obligations.
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COPYRIGHT: Insurance Publishing Plus, Inc. 1998
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