Introduction: Insurance claims can be a complex and often misunderstood process. Many myths and misconceptions surround the topic, leading to confusion and anxiety for policyholders. This article aims to debunk common myths about insurance claims and provide you with the facts you need to navigate the process confidently. Whether you’re considering buying insurance online or dealing with a claim, understanding the truth about insurance claims is essential.
Myth 1: Insurance companies always deny claims Fact: While it’s true that insurance companies have a duty to investigate claims and may deny those that are fraudulent or not covered under the policy, the vast majority of claims are paid out. In fact, according to the Insurance Information Institute, 97% of auto insurance claims and 98% of homeowners insurance claims are paid.
Myth 2: Filing a claim will cause your premiums to increase Fact: While filing a claim may result in an increase in your premiums, it’s not always the case. Many factors come into play when calculating premiums, including your claims history, the severity of the claim, and the type of insurance you have. In some cases, filing a claim may not affect your premiums at all.
Myth 3: You should always accept the first settlement offer from your insurance company Fact: While it may be tempting to accept the first settlement offer from your insurance company, it’s essential to review the offer carefully and make sure it covers all of your losses. If you feel the offer is too low, you have the right to negotiate for a higher settlement.
Myth 4: Insurance companies in Kenya are not trustworthy Fact: Insurance companies in Kenya are regulated by the Insurance Regulatory Authority (IRA), which ensures that they operate fairly and transparently. The IRA also provides a platform for policyholders to lodge complaints against insurance companies if they feel their claims have been unfairly denied or underpaid.
Conclusion: Understanding the truth about insurance claims can help you navigate the process with confidence and peace of mind. Remember, insurance companies have a duty to act in good faith and pay out legitimate claims. If you’re considering buying insurance online or need to file a claim, take the time to research your options and understand your rights as a policyholder. With the right information and a bit of patience, you can successfully navigate the insurance claims process.