At every step of the way, there is potential for delays. some of these are unavoidable whereas others are due to the human factor.
Below are some examples of the most common.
I have personally seen a claim be closed in 3 weeks; from incident to final claims closure.
In reality the claim can take up to 18 months. With a combination of unavoidable delays, intentional delays by a third party and a lack of skilled insurance claims handlers.
You have been unable to confirm the details of the other party involved or have been unable to find any eivdence.
It has happened where people have made claims to who they thought was their insurance and it has turned out to be a an accident management company.
Important details can be logged incorrectly, ie Third Party reg and time is spent chasing wrong party.
Potential points of evidence are not give to insurance to follow up on.
Time sensitive evidence- cctv, is not followed up on and is unrecoverable.
Witnesses are not contacted or when they are, they do not respond to requests.
Claim is forgotten and as no one follows up the claim remains unresolved.
The vehicle is taken to an approved garage or chosen repairer for necessary work.
The other party's insurer acknowledges responsibility for the incident.
Once repairs are completed, the car is returned to the policyholder..
The policyholder's insurance company compiles a comprehensive breakdown of all costs associated with the claim. This includes repair costs, car hire charges (if applicable), administrative fees, and any other relevant expenses. This detailed 'outlay' is then formally submitted to the third-party insurer for reimbursement. The outlay will typically include supporting documentation such as invoices and receipts.
The at-fault insurer receives the outlay and begins a thorough review process. They will check each item for legitimacy and accuracy, ensuring that all claimed costs are directly related to the incident and are reasonable. This may involve comparing repair costs with industry standards, verifying the duration of any vehicle hire, and scrutinizing any additional charges. If there are any queries or disputes, they will communicate these back to the policyholder's insurer for clarification or negotiation.
Once satisfied with the outlay, the third-party insurer processes the payment. This usually involves a bank transfer of the full claimed amount to the policyholder's insurance company. The payment should cover all agreed costs related to the claim. If there were any disputed items that couldn't be resolved, these might be excluded from the payment, with an explanation provided.
At this stage, the policyholder's insurer confirms that all expenses related to the incident have been fully reimbursed by the third-party insurer. This includes not just the direct costs like repairs and car hire, but also any administrative expenses or fees incurred during the claims process. The insurer will reconcile the received payment against their records to ensure everything is accounted for.
If the policyholder paid an excess at the beginning of the claims process (which is common practice), this amount is now refunded. The refund is processed because the claim has been settled as 'non-fault', with all costs recovered from the third-party insurer. The excess refund is typically processed automatically, but policyholders should check their policy documents or contact their insurer if they're unsure about the process.
The insurance company now finalizes all documentation related to the claim. This involves updating their records to reflect the full settlement, ensuring all parties (including any repairers or hire car companies) have been paid, and that all necessary documents are filed. The policyholder should receive a formal notification that their claim has been closed. This step also often involves updating the policyholder's claims history, which may be relevant for future renewals or if the policyholder switches to a new insurer.
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