Declined Claims

What happens when an insurer declines a claim?

When dealing with claims it is important to embrace the principle that insurers must only pay valid claims and that the consequences of not doing this is higher premiums for everyone.

A claim being declined can have varying degrees of impact. For example, it could be a mobile phone which is lost and valued at £200. A claim being declined in this instance is unlikely to create distress although it may annoy a customer.

The other end of the scale can create increased levels of stress for clients, for example, when a catastrophe strikes and a claim is declined.

A recent story which shocked me is available to read below:

https://www.thesun.co.uk/money/5918332/family-of-six-whose-house-burnt-down-have-insurance-claim-refused-over-number-of-bedrooms-dispute/

It is my opinion that brokers are too often judged on the premiums which they deliver, and not enough on their ability to deal with contentious claims.

All declined claims will reach my desk for assessment as I am the Chartered Insurance Broker for Movo Insurance.

In the first instance I will work with our clients to establish whether the claim has been fairly or unfairly managed.

If the claim has been fairly declined, we will usually run through the options with the client and look at alternative solutions, such as passing costs to a third party.

If the claim has been unfairly declined, we will usually ask for the opinion of Fenchurch Law who will advise on the prospects of challenging the insurers decision. If there is a good prospect of success, Fenchurch Law will provide legal assistance to challenge insurers. This service is an invaluable asset for our clients.

For those eligible, there is also access to Ombudsman service which is free and can award up to £150,000 in compensation.

Having support during the claims process is, for me, the main reason one should opt to use an insurance broker. Always ensure your brokers have the experience and expertise to deal with your potential claims.

Every client is an individual, with their own needs, so if you have a query please get in touch and we’ll be glad to help you.