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The Ombudsman is often approached to settle
disputes after a claim has been rejected by an insurer. It is surprising how
many claims are not paid out purely because the insured party failed to comply
with a specific part of their insurance contract. Below are 10 essential tips
to make sure you won’t have a claim rejected.
1. Complete the application in full
and correctly
Full
details must be given to the insurance company at all times. It amounts to
dishonesty if you fail to disclose all information or misrepresent facts. Also
be aware of any spelling or administrative errors.
2. Consider insurable interest
At
all times make sure that you as policyholder have an insurable interest in the
assets covered by your insurance policy. You are not allowed to insure assets
that technically do not belong to you. A good example here would be parents who
want to insure their children’s vehicles under their policy because it is less
expensive. Most insurers, however, prefer that children’s cars are insured
under their own separate policy, especially if the car is registered in the
name of the child and they are no longer financially dependent on their parents.
3. Drivers of insured vehicles must
have a valid licence
If
your policy allows anyone else (except you) to drive your car with your consent,
the person who is driving at the time of an accident must have a valid driver’s
licence. If not, you will not be covered and your claim might be rejected.
4. Be responsible
It is
your duty to do everything in your power to prevent possible losses. For
example, it is not wise to leave your car keys in your car, or to have your
handbag or purse visible on the seat next to you when driving. By doing so, you
run a greater risk of having your car stolen or of becoming a smash-and-grab
victim. Rather lock away your valuables in the boot.
5. Make sure your vehicle is
roadworthy at all times
One
of the best examples is worn-out tyres. If your vehicle skids on a wet road and
you crash into the car in front of you while your tyre tread is less than the
minimum amount allowed (1mm), your claim may be rejected. Accidents happen, but
it remains your responsibility to keep your car in a roadworthy condition at
all times.
6. Ask yourself if you meet all the
security requirements
Cover
for theft or hijacking is subject to the specific security requirements of your
insurer. Make sure you stay up to date on your insurer’s requirements and the
implications of not meeting these requirements. It is also advisable to provide
your insurer with proof of installation of any tracking devices or other
security features.
7. Forget about ‘one for the road’
Should
you be involved in an accident while driving under the influence of alcohol (or
any drugs) the insurer may reject your claim, even if you were not the guilty
party. Rather take a taxi/Uber or get a lift from a friend.
8. Make sure your monthly premiums
are up to date
If
you submit a claim and your monthly premium has not been paid, you will not
have cover. If you have a problem making payment, contact your insurer well in
advance to make alternative payment arrangements.
9. Double-check you are not
underinsured
For
example, if you have not reassessed the value of your home contents in some
time, you may actually be underinsured. While your claim may not be rejected
entirely, you certainly won’t get sufficient funds to cover your losses. It is
your responsibility to keep an eye on replacement values and to make sure you
are insured accordingly.
10. Chat to your financial advisor
for assistance
Remember, premiums are based on your risk profile and the type of cover you require. Ask your advisor for different quotes to get the best cover for you, which really meets your needs and suits your budget. Your advisor is there to help you make sure that you are sufficiently covered. Your advisor will also help you to navigate through all the technical policy wording and requirements, as these differ from insurer to insurer.
Riana
Wiese is a financial advisor at PSG Insure Meesterplan.
