In this Newsletter, we want to try and shed some light on the Recovery aspect of any Claim whereby you have paid your excess to the Panelbeater, your vehicle has been repaired and you now await the refund of your excess amount.
This all sounds quite simple – the Third Party was to blame after all.
In an attempt to manage Client expectations, let us start right at the beginning. An excess is the First Amount payable by the Insured irrespective of who is to blame for the incident. It is an amount Insurers have underwritten into their Agreement to insure your vehicle.
While recoveries are not guaranteed, as Brokers, we will do everything in our power to encourage Insurers to pursue a recovery attempt. The ultimate decision, however, lies with the Insurer and there are many reasons why they may abandon recovery, such as:
False information given by the Third party may result in costly tracing agents needing to be appointed
False registration numbers are used at times
The Third Party may deny liability in the face of no independent witness statements
People change their statements, give out false information, and ignore Letters of Demand
Unfortunately, this is the reality.
Insurers ultimately want to achieve a successful recovery of both their outlay and yours. But, when the cost of recovery exceeds the claim amount, recovery will be abandoned by Insurers.
As your Broker, we will do all we can to facilitate the recovery process in order to ensure your excess is reimbursed to you.