Tag Archives: claims

EATING YOUR CAKE AND HAVING IT BACK

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Mr. XYZ took up a comprehensive motor insurance cover on his brand new car which he got for N7,500,000.00. Since the insurance premium payable would be based on the value of the vehicle, he decided to reduce the value to N3,000,000.00  so that he would not have to pay so much in premium.

Some months after, his car was involved in a ghastly accident and the cost of repairs was about N2,500,000.00. In settling his loss, his insurance company, having weighed the amount he was claiming to the sum insured, opted to treat the claim on a Constructive Total Loss(CTL) basis. By this option, it means that the insurer decided that based on their records, the vehicle was beyond economic repairs. Mr. XYZ was offered the sum of N2,800,000.00 (after all deductibles) in settlement of the claim.

Mr. XYZ found himself in a fix. The amount he was offered was not even up to half of the value of the car but he couldn’t afford to repair the car himself. However, accepting his insurer’s offer would require that he forfeits the damaged car to them in line with the conditions of the insurance policy.

You obviously cannot eat you cake and have it back. Continue reading EATING YOUR CAKE AND HAVING IT BACK

HOW TO CLAIM UNDER YOUR BURGLARY INSURANCE POLICY

A claim is the occurrence of an insured peril upon which the liability of an insurance policy is engaged. In other words, you have suffered a loss covered by your insurance policy and which now qualifies you to seek indemnity (compensation).

Many unfulfilled claims expectations are as a result of not knowing what is required of you in the event of a claim, how best to seek compensation and poor understanding of one’s insurance policy.

What should you do following a burglary incident? Continue reading HOW TO CLAIM UNDER YOUR BURGLARY INSURANCE POLICY

HOW TO MAXIMIZE YOUR BURGLARY INSURANCE POLICY

The uncertainty of a loss and its associated cost proves the relevance of an adequate insurance protection. However, just obtaining an insurance policy would not ensure that you are adequately compensated in the event of a loss. The need for you to know what your insurance policy covers can not be overemphasized. Continue reading HOW TO MAXIMIZE YOUR BURGLARY INSURANCE POLICY

​BEYOND MOTOR INSURANCE – The Extended Benefits

There are extraordinary extensions you can incorporate into your motor insurance policy that goes way beyond the regular motor insurance protection.You will recall that we dealt extensively with the covers (both standard and extensions) provided by motor insurance policy in our previous discussions. As we round up our discussion on motor insurance, we shall be taking this extensions a little further. Continue reading ​BEYOND MOTOR INSURANCE – The Extended Benefits

EX-GRATIA CLAIM SETTLEMENT IN INSURANCE

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Understanding the human face of insurance laws

Someone once approached me for the meaning of “Ex-gratia” in insurance and how to go about it when your insurance company has turned down your claim on whatever ground they might have given. So if you have ever been in this situation, it is not the end of the world. You still have an option you could explore  to get a soft-landing.

“Ex-gratia” is a Latin word meaning “an act of grace”.

It is a plea for mercy and only used where there is no technical reason for a claim (loss) to be accommodated under a specific insurance policy. Continue reading EX-GRATIA CLAIM SETTLEMENT IN INSURANCE