Did You Know? Post Loss Claim Important Aspect

Did you know the important aspects you need to understand after the claim occurred and is paid by the Insurer? Some rights on behalf of the Insurer may arise. Referring to the policy terms and conditions, you have an obligation to preserve those rights. Insurer’s rights after the claim payable are as follow: 

1. Subrogation

Subrogation is a term describing a legal right held by the Insurance to legally pursue a third party that caused an insurance loss to the Insured.

Things you have to do to preserve Insurer right for this aspect:

1. To act as if you didn’t have Insurance when the claim occurred.
2. Not to make an advance agreement with a third party which would cause invalidity of the Insurer's right.
3. To notify the Insurer immediately to get further advice on the steps that should be taken.
4. To preserve all evidence in-line with the incident.
5. To give Insurer full support and cooperation when the subrogation process is conducted.

2. Salvage

Salvage is a damaged property taken by the Insurer to reduce its loss after paying a claim. Sometimes, the damaged property will retain economic value, and the decision to take or not to take the salvage will be on Insurer’s side.

Things you have to do in order to keep the Insurer’s rights on this aspect are:

1. To keep all damaged items in a safe and proper place while waiting for further process.
2. To notify Insurer in advance if you have a storage problem for the salvage.
3. To help the Insurer to find the best market and buyer to sell the salvage.

The above is a general advice on helping Insurer to protect their rights after the claim payable and occurred. If you have any further questions and/or concerns about the above aspect, please feel free to contact us at 021 – 2523110, and we would please assist you.