Insurance & its Claims !
An insurance claim can be referred to as the payment of risk as the peril insured against is covered. The contingency against which the protection is given is not materialized when the loss insured against actually occurs; the insured has got to make a claim on the insurer for indemnification of loss. If loss doesn’t occur, no payment would be made to the insured. Before admitting a claim, relevant evidence in connection with the policy is required.
The main steps to be followed to claim the amount of insurance are:
Notice of the claim- A prompt notice of the claim by the insured is required. The receipt of notice of approval of the course of action taken by the insured does not mean that the liability of any loss is acknowledged. The damage notice must be given prior to survey by insurer’s representative and the survey report signed by him.
Documents required for claim- the documents required at the time of claim are policy or certificate of insurance and bill of lading which determines the scope of the contract of carriage, invoice or bill, certificate of survey, account sales or bills of scale and letter of subrogation.
The different documents required for different types of claims are:
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Total loss- here we require insurance policy, bill of lading, copy of the invoice, protest, letter of subrogation and notice of abandonment.
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Partial loss- in this case a surveyor’s report, bill of scale, letter of subrogation and cost of protection is required.
If the claims are successful then the insured has to pay a few charges like Particular charges, General average charges and salvage charges.
In determining the amount of the loss, the rule of causa proxima non remota spectature is applied. It means that when there is more than one cause for the loss or damages the proximate cause and not the remote cause is regarded. The underwriter will pay the amount of loss only when the real or the proximate cause of the loss and it must not be due to the fault or misconduct for the insured.
