What is insurance compensation

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Insurance is a phenomenon that has existed in the field of financial relations for decades. The opportunity to receive compensation in the event of a situation stipulated by the insurance contract can become quite a tangible support. In our country, there are two main types of insurance - compulsory and voluntary. Each of us de alt with one of them, many are still thinking about the right to use the other. Knowledge of the inhabitants in the intricacies of terminology and the whole process is very fragmentary, and sometimes unreliable.

Let's analyze one of the basic concepts in the provision of insurance services, which is insurance compensation. What does this concept imply, how is it defined?

Insurance compensation represents the actual amount that will be paid to the client of the company in the event of an event or 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 the damage caused by an accident will be compensated is the insurance indemnity.

Naturally, the volume of cashfunds to be paid may be adjusted subject to a number of conditions:

• The amount of compensation cannot exceed the cost of damage that was actually caused to the property of the insured, if the contract does not provide for the payment of a specific amount, regardless of the circumstances.
• Indemnity will also be reduced if the insurance amount of the object is lower than its insurance value (unless otherwise provided by the insurance policy).
• In the case of insuring one object from several insurers, the insurance compensation received from all insurers cannot be higher than the actual value of the property.
• The amount of compensation is payable regardless of payments under other agreements (social benefits or compensation for harm to he alth).

In today's reality, it is not uncommon for an insured to be denied an insurance claim. Such a decision may be caused by the following circumstances:

• Untimely notification of the company about the fact of the occurrence of an insured event.
• Incomplete package of documents provided as confirmation.
• Corrections in the insurance policy.
• Uninsured event.

These are the most common reasons that insurance companies put forward as arguments for refusing to pay. As for auto insurance, the list of reasons for refusal or incomplete compensation for damage is more extensive.

If the clientdoubts the legitimacy of such actions on the part of the insurance company, he may resort to such a procedure as collecting insurance compensation in court. In order to guarantee yourself legal support and assistance, it will be most correct to turn to legal services. Self-treatment in court may not always be successful, since insurance companies maintain a fairly extensive staff of lawyers who may make you doubt the validity of the claims. An independent specialist will help you understand the intricacies of the case, assess the chances of resolving it in favor of the client, and also give detailed instructions on what documents you need to collect to file an application with the court.