Allianz Blog Insurance Explained

Your Right to Appoint a Public Loss Assessor

If you don’t know what a loss adjuster is then count yourself fortunate. Loss adjusters are insurance professionals who, in the event of an insurance claim, assess the loss and the amount of compensation that should be paid.

Let’s look at home insurance. It is common for insurers to appoint loss adjusters to assess claims for loss or damage resulting from (for example) fire, storm, water damage, theft. Although the loss adjuster is appointed by the insurer and has his/her fee paid for by the insurer, it is their duty to assess the loss and advise on claim settlement in an even handed manner, i.e. claim settlement shoul...

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Protecting the ‘Pool’

You may have seen reported in the press over the summer that insurers are funding a new Garda unit set up to tackle bogus insurance claims.

Why do insurers put effort and expense into claim investigations and projects such as this?

To find the answer I think we need to ask a simple question.

How Does Insurance Work?

In answering this let me take you back in time. London in the seventeenth century, around the time of the Great Fire. Merchants and shipbuilders would meet in coffee shops to discuss trade and their problems and concerns in relation to it.

In effect they had the same risks associated with their businesses as ...

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Indemnity – a simple concept?

Let’s start with a simple statement:

In accepting and dealing with your claim, your insurance company aims to restore you to the same financial position as you were in beforehand. This is known as the principle of Indemnity.

Let’s look at 2 simple examples of Indemnity in Motor and Home Insurance:

Motor

Where your motor insurance company accepts a claim for damage to your car they will either arrange for it to be repaired or, if it is deemed uneconomical to repair, they will make you a cash offer based on the cars’ current market value. Market value is the amount that you would reasonably pay for the car at the relevant t...

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Acting in Good Faith Is of Utmost Importance

An insurance policy is a contract between the policyholder and the insurer. The policyholder pays a premium. In return the insurer provides the agreed insurance cover.

The parties to an insurance contract must be honest with each other and must not hide any information relevant to the contract from each other. This is known as the principle of Utmost Good Faith.

It is important to the insurer that they have a full and accurate picture of the risk that is proposed to them. Most of us will have bought car and/or home insurance and will be familiar with the type of questions asked by insurers, relating to the person making...

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What is Insurable Interest?

The purpose of insurance is to return you to the same financial position after a loss as you were in before the loss occurred.

Therefore if you will not suffer financially from the loss of or damage to property (a car or an item in your home) then you cannot insure that property. To put this another way, you must have an insurable interest in the property you propose to insure.

It is obvious that if you own something, having paid for it, then you have an insurable interest in it. If someone steals your bicycle you will suffer financially from that loss.

In a lot of cases ownership isn’t just as clear cut as this. What if...

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Why Do Insurers Investigate the Cause of Claims?

Insurers must determine if the cause of loss or damage is covered by the insurance policy, this is referred to as Proximate Cause. Insurance policies cover specified perils and benefits. Also they are subject to conditions (which are rules that insurers expect Customers to follow in order for policy cover to apply); and exclusions (circumstances under which cover does not apply).

When considering the cause of loss or damage the insurer is concerned with the Proximate Cause. In many cases this will be obvious. For example, I once struck a gatepost while reversing my car into a driveway. The damage to my car was caused a...

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