Material fact is the fact deemed utmost important that it would change the decision made by an insurer if it were kept hidden.
Q2: What may result in my claim being declined?
The most common reasons for claims being declined are non-disclosure and misrepresentation of material facts by the customer when they applied to buy the insurance product. It is important that customers must answer all questions fully and accurately when submitting an application for the insurance cover.
Another common reason is that if the Insured did not comply with the warranties and/or conditions then the claim will be declined. The general conditions and warranties usually can be found in the last part of each cover section, or else it will state in the final section within the policy wording.
Q3: What is “average settlement”?
Average settlement may apply when the Insured's claim is reduced in direct proportion to the under-insurance. This means that if you make a claim and your sums insured are found to be inadequate your claim settlement will be proportionately reduced.
Average settlement will apply if the sum insured is inadequate at the time of the loss
Whilst we are pleased to provide guidance on the basis of cover, we do not accept responsibility for the adequacy of the sums insured or indemnity limits. Where appropriate, we recommend that you consider your agent’s advice or professional valuation services.
Q4: What will affect the payment of my claim?
You will be required to provide clear proof of ownership of any item being claimed for. This can be done by retaining proof of purchase (receipt or bank/credit card statement) otherwise the value of the item being claimed for will be discounted for wear and tear along with age or declined in its entirety.
If your property is under insured, i.e. you insure your house less than its actual rebuilding cost, or your equipment less than replacement value, your claim payment will be less than you expected, and on ”average settlement” basis.
Q5: What do I need to do if I want to make a claim?
Please contact us or your agent immediately without delay. You need to tell us:
Your name, address and policy number;
Time, place, and value of loss or damage occurred;
Crime number or police record if it is a crime related.