What is an Insurance Claim  
Insurance Consumer Information

What is an insurance Claim
A claim occurs when something unfortuitous happens to cause loss or damage to insured property.

Whether or not an insured person and/or entity "the insured" will be entitled to cover under a policy of insurance will depend on the circumstances giving rise to the loss and the limits of cover provided by the insurance.

For example, where a small business has its stock and contents insured for fire, and a fire occurs which causes loss and/or damage to the stock and contents, the insured can expect to be covered.

This principal is similar in all insurance classes, from small business insurance to home and motor vehicle insurance. *

Where a claim is accepted the insurer will register a claim and make appropriate financial reserves in its books of account to cover the claim. It will usually make a financial reserve for rejected claims in the event their decision is challenged.

Paying a claim is the moment of truth for an insurance company because paying claims is what insurance companies do.

When an insurance company pays a claim, it is keeping its promise to pay the claims of those who have policies with the insurance company.

It is in everyones' best interests if people check what is covered in their insurance policy when they first buy, or renew their insurance.

The insurance company may send out a loss or claims assessor to look at and check the claim for the loss or damage.

The Insurance Council of Australia has a General Insurance Code of Practice, which sets out rules that insurance companies, that are members, must follow. The General Insurance Code of Practice outlines principles and standards about the insurance claims handling process.

The Insurance Code of Practice can be found at: http://www.ica.com.au/codepractice/.

Insurance Claims are also subject to the Insurance Contracts Act - click here for a copy **

* The liability of an insurance company is always contingent on the coverage, conditions, exclusions and limitations of an insurance policy thus, where a breach of the coverage, conditions, exclusions and limitations occurs it might give cause for the insurance company to reject the claim.

** Not all insurance companies are bound by the Insurance Contracts Act. In some cases certain types of insurance might not strictly be subject to the Insurance Contracts Act such as Marine Insurance or insurance issued by foreign insurer, authorised or unauthorised.


Disclaimer: Rural & General Insurance Broking Pty Ltd while able to assist clients with lodgment of an insurance claim is not an insurance underwriting company and has no authority from any insurance underwriting company to administer insurance claims. Please check the section of your insurance policy, which describes claims procedures and what you must do in the event of a claim. Lodgment of a claim does not constitute an acceptance of liability by the insurance underwriting company. If you are left in any doubt please do not hesitate to contact our office on Ph: 1 800 227-473 or email us at office@rgib.com.au

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