Addressing Those Common Claims Questions

Let’s be honest. Claiming from insurance is definitely not one of your priorities. But we all know that it’s bound to be something that will happen at some point in our lives. We thought we’d give you a bit of an insight into last year’s most common claims queries – and help you to avoid some common pitfalls.

Q. I installed a vehicle tracker, so why was my claim rejected on the basis that my car did not meet security requirements?

A.The key thing to remember here is that not all devices are created equal, and some insurers may insist on a specific model because of the variance in functionality. So it is important to not only ensure that you have the right device for your cover as specified by your insurer, but that it is always in working condition.

Q. Why has my contract been cancelled due to multiple claims?

A. An insurance relationship relies heavily on both parties meeting their end of the bargain. Your monthly premium is you doing just that to cover the identified risk. However, multiple claims suggest that the risk is higher than initially anticipated and thus outweighs the feasibility of the agreement - hence in selected cases can lead to cancellation of the policy.

Q. Why has my contract been cancelled due to non-disclosure?

A. Just like a normal human relationship requires honesty and communication, the same applies with an insurance relationship. Sharing of false information, whether at sales stage or claims stage, could very well lead to a claim rejection and cancelled policy. Be wary of sharing false information or submitting fraudulent claims.

Q. What is a regular driver?

A. In most cases, cars are only insured based on the “main risk person” which would be the person driving it the most in a specific time period. Risks differ with every individual’s profile and hence, cover suited to each risk level is necessary. If the person who drives the car more regularly is not in alignment with what is stated on the contract, it is rendered null and void.

Q. Why am I not being paid the settlement amount I was insured for?

A. The whole point of insurance is to put you back in the position you were in before the loss or damage. This means that settlements can vary due to depreciation and extent of damage. The value at which you covered your car for could either be retail, market or trade – which will influence the settlement amount you get at claims stage.

Q. Why are parts being replaced with second hand versions?

A. Like we mentioned earlier, insurance is about getting you back to the position you were in before the loss or damage, not enrich you to be in a better position than you were. This means that your insurer is not obliged to get you the latest and greatest and can opt for a fully functional item that is of the same model - or even second-hand.

Q. Why were my extras excluded in my settlement amount?

A. This is very simple, if you don’t specify it, then it won’t be covered. Additional features like mag wheels, music systems and sun roofs need to be specified when taking out your car insurance policy. They increase the value of your car - and thus the value of the risk covered, ultimately impacting your monthly premiums. If you don’t specify them, your car will be insured for a value that excludes them - and hence they will not be replaced.

Q. Why do you settle with the bank when a financed vehicle is written off?

A. Most cars on our roads are financed and thus technically still belong to the financing house / bank. With that in mind, even with you being the insured risk, your insurer has an obligation to settle the amount with the actual owner of the car before reimbursing you, the client.

Q. Why am I being investigated?

A. Sounds creepy, but we’re not actually investigating you per se: we’re checking all the claim facts and validating information to ensure that it is within bounds of the policy in question. To be able to approve your claim, we need to make sure that everything is in line with your contract and that all is done as per the insurance agreement.

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