What does it mean when an insurance company advises you that your claim is ‘under review’?
Basically, it could be for a variety of reasons, but unfortunately, you will not get a straight answer from the insurance company.
How does this happen?
Well, we can only assume there are sources within the claims department that are purposefully there to try and find something. So, again, what does that mean? It means DELAYS for third party operators.
The reality:
Other than indemnity issues, third party claims may be held up because someone within their claims department has determined that the claim needs to be investigated. Again this can be for a variety of reasons. Many third-party claims have been investigated for just being enterprising. Insurance companies take aim on those panel beaters who repair both the at-fault party and the non-at-fault party. Something that they themselves are guilty of.
The Solution:
Nonetheless, as Mercantile Agent’s it is not in our interest to explore the reasoning why such reviews are being carried out. Our priority is to collect a debt that is owed. Any delays caused by the presumption of wrongdoing need to be proven. The exception to this rule are those that fail to meet the indemnity clauses or have not paid their excess.
We are bound by the rules of the Credit Code. We are not at the mercy of the insurance companies nor are we bound to accept their delays. Once the instruction is provided that a debt is owed our objective is collect the debt.
If delays continue, and we have issued demands with further notifications – There is no reason not to issue a Statement of Claim against the at-fault party for damages, even though an investigation has commenced
Unless there is clear evidence of wrong-doing such as:
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Witnesses
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Being Charged with a Crime
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Video Footage
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Confession
Without the above information, we are bound by our contractual arrangement with our client and also the repairer.