Insurance Tips

Back to Tips Index | Claims! Claims! Claims!

We have all been through it! Your car is innocently parked outside the shopping center. You return to find a huge dent in the side of your car with a "sorry" note on your windscreen. You repair the damage and then, because the other party is totally at fault, you make what is called a gimel (third party) claim against his/her insurance. Now, what are your rights and obligations?

  1. You can only claim once for the damage. Therefore your insurance company
    must supply you with a no-claim letter to prove that you are not claiming
    from your own company.
  2. You are obligated to lessen the damage as much as possible. (You can not
    wait for 2 weeks to repair a broken windshield and then also claim for rain
    damage to the seats).
  3. The other party’s insurance company has to confirm the receipt of your claim
    (This confirmation usually comes to your insurance agent.)
  4. The $64,000 question – by when do they have to pay? The law – you must receive payment within 30 days of their receiving all the paperwork necessary for a claim. The 30 days are up and no payment is in sight? They have to add the C.O.L. linkage + 4% interest from the day that you sent in the claim.
  5. What if they agree to pay only 50% of the claim (i.e. you claim for 2 doors
    And they agree to pay for one only.)

By law, any amount that is agreed upon by both sides must be paid and what
remains can be decided in court. Therefore if you receive a cheque from the
insurance company for 50% which requires you to sign a full waiver of future
claims, you must consult with your agent before signing and make sure that
you leave your options open.