PROVING YOUR LOSS
When making a claim to their Insurer, many consumers are surprised to learn that they have to prove their loss by satisfying the Insurer regarding ownership of items, which have been lost, stolen or damaged. It is a policy requirement to establish the items were owned by the person/s insured by the policy.
It is reasonable of Insurers to expect to receive some proof of ownership of items to support the amount of loss claimed.
Should you not have the original purchase invoices for the claimed items, going through your old credit card statements or bank statements may assist you to find proof of the transaction. Manuals, warranties, boxes and asset registers for businesses, can also be used as proof that you owned an item.
It is in both the Insurer and the policyholder’s best interests to comply with the proof of loss requirements, so that the claims process can proceed as quickly and efficiently as possible.
Your obligations in the event of a claim are always clearly set out in the policy. This includes having to provide the Insurer with any documents, which the Insurer requires, that proves ownership.
The policy states that in the event of a happening which may result in a claim under the policy the Insured shall:
- Give notice thereof to the Company as soon as reasonably possible.
- Inform the Police
- Give the Company such proofs, information and sworn declarations as the Company may require.
Insurance companies are generally not unreasonable and would not expect you to keep receipts for all your tennis socks bought the last two years.
The insurance company can of course (and will) ask for proof if you claim anything with a high value.
Earning less than R100,000.00 per year and claiming 3 Rolex watches and 7 tailor made suits in a break-in will probably warrant proof of ownership.
The moral of the story is that accurate proof of loss is critical to the claims process.
