Finance, Insurance
What is insurance compensation?
We will analyze one of the basic concepts in the sphere of providing insurance services, which is insurance compensation. What does this concept mean, what is it defined?
Insurance indemnity is the actual amount that will be paid to the client of the company in the event of an incident or a situation stipulated by the insurance contract. On the example of the same motor third party liability insurance, it can be noted that the amount within which damages caused by an accident will be compensated, and there is an insurance indemnity.
Naturally, the amount of cash that is payable, can be adjusted taking into account a number of conditions:
- The amount of compensation can not exceed the value of the damage that was actually inflicted to the property of the insured, unless the contract provides for the payment of a specific amount, regardless of the circumstances.
- The refund will also be reduced if the insurance amount of the object is lower than its insured value (unless otherwise provided by the insurance policy).
- In case of insurance of one object from several insurers, insurance compensation received from all insurers can not be higher than the actual value of the property.
- The amount of compensation is subject to payment regardless of payments under other contracts (social payments or compensation for harm to health).
- Untimely notification of the company about the occurrence of the insured event.
- Incomplete package of documents provided as confirmation.
- Corrections in the insurance policy.
- Non-insurance case.
These are the most common reasons that insurance companies put forward as arguments for refusing to pay. As for car insurance, there the list of reasons for refusal or incomplete compensation is more extensive.
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