Insurance cover is something that everyone should have in place because of the protection they provide, but there are slight problems that occasionally arise with insurance policy contracts, mostly at the points of filing for compensation claims. Some of these common problems are highlighted below:
a. Denial of policy contracts: This is not common but it remains a possibility. People have found themselves staring blankly when they have been told that there is no record of them having any insurance policy records with the insurance company. But most often than not, this has often happened when people have been victims of insurance frauds from fraudulent agents who pose as genuine insurance agents and representatives. And that is why you must take cautions to ensure that you are dealing with an insurance agent that is true and honest with a background check to confirm his valid relationship and status with his insurance company.
b. Claims investigations and claims adjustors: Most people have often been disappointed with their insurance compensation offers after claim adjustors had worked on their claims and investigated their misfortunes. Insurance companies often have their own claim assessors and adjustors and their duty is to minimize the compensation claims of any insured with a view to ensure that people are not compensated beyond their basic losses. They work to ensure that your claims are true and fair, and that they are not targeted at making any undue gains from your misfortunes, and that is why people are often disappointed when they expect, say $5,000 and they are eventually offered $2,500 – although you are still free to contest any settlements in courts.
c. Delay in payment of compensation claims: There are often delays in the payments of compensation claims and settlements, and this is not unconnected with investigations carried out by insurers to ascertain the validity of claims, and the consequences of prolonged lawsuits. Insurance attorneys tell you not to accept settlements but to contest them in courts, which is fair enough, but they don’t tell you about the waste of time. Sometimes you have to use your own money to restore things and then wait to be compensated for your expenses by your insurers.
d. Settlements and reduction of expected compensation: This has been examined under the appropriate section above. People get below their expected compensations because insurers don’t want them to receive a cent above what is required to restore their losses.
e. Litigations and legal fees: Insurance lawsuits often cost money in legal fees, and it could take off a considerable chunk of your settlement. So when an insurance attorney tells you not to accept a settlement without contesting it in the law courts, you must discuss litigation fees and services before heading out to court and work out how this might impact on your final compensation settlement.