During an eagerly anticipated trip, unfortunately, you suffer from weather-induced allergies. You want to submit a claim request to the insurance company for compensation but are unsure of the procedure. To share experiences in this matter, Pacific Cross Vietnam will identify the four most common mistakes people make when writing compensation claim requests.
1. What is insurance compensation?
Insurance compensation is one of the fundamental principles in insurance law. The policy’s compensation will not exceed the value of the insured’s losses.
Therefore, the principle of insurance compensation for the insured person only entitles them to insurance benefits equivalent to the losses they incurred.
2. What does the principle of insurance compensation include?
The contents of the principle of insurance compensation often encompass the following aspects:
2.1. Effective timing
Insurance compensation occurs under certain conditions, such as:
The policyholder pays the insurance costs as per the signed insurance contract. When the insurance contract is concluded between the insurer and the policyholder, both parties agree on the insurance fee debt. There is documentation proving that the insurance contract has been signed beforehand.
Generally, when the insurance contract between the two parties ends, the compensation also terminates.
However, in cases where the policyholder does not make timely extension payments as specified in the signed contract, the insurance provider (insurance company) is still responsible for compensating the insured person.
Additionally, the policyholder must fulfill outstanding fees as per the pre-agreed insurance contract.
2.2. Principles in the case of property compensation:
Insurance property compensation often follows principles such as:
When damage occurs, insurance compensation is based on the property’s value at the current market rate (not exceeding the insured amount). The location and extent of the damage determine the insurance company’s compensation level. Insurance compensation is based on established principles to avoid instances of insurance profiteering.
Based on these principles, compensation can take various forms:
Damaged property can be either repaired or replaced with equivalent-value property, or monetary compensation can be provided. In cases where both parties fail to reach an agreement, compensation will be in monetary form. If compensation is made through property replacement or cash payment, the insurance company has the right to reclaim that property.
2.3. Principles in the case of civil liability insurance compensation
Based on the signed contract, the insurance company will pay the insured person as per the contract’s provisions.
The insured amount includes related expenses such as damages, losses incurred by third parties, as well as their property.
3. Mistakes to avoid when submitting an insurance compensation claim request
3.1. Avoid exaggerating personal damages in insurance compensation claims
Suppose you’ve had an uneventful vacation in Brazil. Initially, the weather was cold and rainy. Later, when the weather improved, you began feeling stomach pain and discomfort. Upon visiting a local clinic, the doctor diagnosed you with a minor digestive issue.
However, disregarding the doctor’s diagnosis, you return home and submit a compensation claim stating that your trip was interrupted due to a severe illness. Naturally, your compensation claim will not be accepted by the insurance company.
Some individuals tend to “overstate” their medical conditions, injuries, or losses during their trips to obtain compensation from insurance companies.
It’s best not to do so. Misrepresenting facts in your insurance compensation claim is considered insurance fraud.
In all complaint cases, insurance company staff meticulously verify the truth. If they find no evidence of a severe illness in your medical records or if the doctor did not recommend interrupting your trip, the insurance company will not accept compensation claims.
3.2. Failure to thoroughly read the cases not covered for insurance compensation in the contract
In another scenario, you pack valuable jewelry like bracelets, earrings, and expensive clothing items for a luxury cruise. Upon boarding, you realize your luggage wasn’t brought to your cabin and has gone missing. You file a compensation claim for the lost luggage but find that you do not receive the compensation value you expected. Why?
Every insurance package has limitations on specific cases. Therefore, you need to carefully understand the regulations regarding travel insurance compensation. Some travel insurance policies do not cover losses of jewelry unless they were stolen with the use of weapons or stolen from a hotel safe.
Additionally, personal items like cameras, video cameras, laptops, sports equipment, etc., require detailed receipts to prove the value of the items for insurance company verification.
Hence, before traveling, ensure you are well-informed about insurance policies. You might consider keeping uninsured items separately for safety. Moreover, keep a list of items in your luggage and purchase receipts to ensure reasonable insurance compensation claims.
3.3. Failing to provide evidence of damages in the insurance compensation claim
You’re on the highway to the airport to start a trip but unfortunately get hit by another car. Your car is damaged, and you have to be hospitalized for a health check-up.
In cases of road accidents occurring on the departure route, if you sustain severe injuries requiring medical treatment, it might justify canceling the trip.
In such a scenario, you submit flight ticket receipts, expenses for the trip, and images of the accident scene to the insurance company, but it’s still not sufficient.
When submitting an insurance compensation claim, list the expenses, reasons for trip cancellation, and any refunds you may receive from other services. Some documents you may need to provide to the insurance company (requirements vary among companies) include:
Receipts and invoices for each expense incurred Documents related to any refunds or compensations received from travel companies, hotels, airlines, property management companies, etc. Copies of bills from resorts or booking receipts Any relevant documentation explaining the precise reasons for canceling or interrupting your trip Diagnoses along with copies of invoices and receipts for each payment, as well as evidence of other insurance payments made Unused tickets along with payment receipts proving incurred expenses Documentation regarding compensation received from travel companies or airlines
You may not need to submit everything mentioned above, but it’s advisable to prepare sufficient evidence to help the insurance company verify information easily.
3.4. Submitting an insurance compensation claim after the specified timeframe
You experience a delayed flight due to engine trouble, and you have to book an alternative temporary hotel for food and rest. Travel delay rights in travel insurance can cover expenses incurred in such situations.
However, you hesitate in submitting the insurance compensation claim, and eventually, when you do, the claim submission deadline has passed. Naturally, the insurance company will reject your claim request.
Comprehensive compensation claim forms usually need to be submitted to the insurance company within 30 days from the end of the insurance contract along with related documents such as hospital, doctor, police, airline, or other responsible agency reports.
Currently, some insurance companies have applications on mobile phones that allow you to submit insurance compensation claims via phone or submit them online with uploaded images and documents. If you have any questions about the claims submission process, contact the insurance company for specific guidance.
Cre: David/ pacificcross.com
