5.10 Recoveries

Recoveries is a means of controlling the cost of claims by an insurer in recovering some of its expenses. When a claim is reported, consideration is given to the following: Salvage: Is there any salvage available and is it economical to recover?Policyholder: Is there...

5.9 Contribution (Dual Insurance)

The definition of contribution is that where two or more policies are in force each pays its rateble proportion of any loss. In the event of the same risk being insured by two different insurers, contribution will apply in the event of a claim in respect of that...

5.8 Betterment

The amount payable is the cost of replacing property of the same kind or type, or repairing it in as good as new, but not better than new, condition.  If the performance or value of the replaced item is greater than the original, the insured bears the cost of the...

5.7 How Average is Applied

Average will apply where the insured is underinsured, whether deliberately or accidentally. If the damage results in a total loss, the sum insured will be paid out, which amount will be insufficient for the client to replace the lost or damaged item. If the insurance...

5.6 Appeal of Rejected Claims

All insurers have a system of reviewing all claims, to ensure that all procedures have been correctly followed. In the event of a claim being rejected, the insured has the right to appeal. The first appeal would be directed to the insurer concerned, and in the event...