People claiming on household insurance policies are now more likely to receive a visit from the loss adjusters, as Insurers try to squeeze down claims.  But Insurers say they need not be regarded with fear and, in any case, they are opposing professionals – called loss assessors – to champion the policyholder’s claim.

The ABI says companies are determined to weed out fraudulent claims, which are reckoned to cost about £400m a year for all forms of insurance.  As a result more claims are being investigated.  For those under £1000 it will generally be down to local offices to deicide whether to pay out.  The loss adjuster’s job is to check that a claim is genuine and the money involved is a fair reflection of the value of the goods stolen, damaged or destroyed.

According to Legal & General: “Because of the problems over fraudulent claims we are using loss adjusters more often, especially where there is a claim during the first year of cover”.    Grant Hayward is a loss adjuster with the firm Cunningham Hart and says there are many misconceptions about his profession.  Most customers think the loss adjuster is there to beat down the cost of the claim and salvage the insurance companies’ money.  But you can get someone to battle in your corner.  He is called a loss assessor.

The Institute of Public Loss Assessors will help you locate one in your area.  An assessor’s job is to get as much money from the insurance company in settlement of your claim as possible – without cheating.  Many regard loss assessors as ‘ambulance chasers’ and Jeff Salmon of Salmon Adams Hilton admits there is an element of truth in it “But you’ve got to give even a vulture a chance and the vast majority of customers are very pleased with the work of loss assessors”.  Assessors usually take 10% of the insurance payout received with minimum fees of about £750.  Generally it is not worth using one for a claim less than £5,000.

The arrival of the storms and gales and the onset of the freezing pipes season always cause a surge in insurance claims, but a survey out this week suggests the average policyholder is dishonestly inflating claims by at least 25%.

The survey, conducted by the Chartered Institute of Loss Adjusters, coincides with a New Year clampdown on fraud by insurance companies, which started to investigate claims on a random basis.

But the Consumers’ Association is urging honest householders not to be intimidated by loss adjusters who try to knock down claims by saying they are “underinsured” or there is unsatisfactory evident – no receipts, for example.

In the past, insurance claims adjusters only used to be routinely employed by insurance companies for claims above £1,000.  Now the threshold is about £300.  In theory, they independently negotiate claims and have the power to raise the amount.  In practice, they are employed to reduce the insurance company’s losses.

Jeffrey Salmon, a leading ‘Loss Assessor’ who battles with insurance companies on behalf of policyholders, says people should always challenge Insurers and the loss adjuster they appoint.  “For some reason, people treat them with the same respect as the Inland Revenue.   They shouldn’t”.

He urges policyholders to be as assertive as they would with, say, a department store over faulty merchandise.  “Take flood claims.  Adjusters tend to quote the cheapest equivalent for replacement furnishings or they deduct ridiculous amounts for wear and tear.”

Original receipts are now crucial when making a claim, though more insurance companies are insisting on evidence of re-purchase or building work invoices rather than estimates.

TSB Insurance, for example, is moving towards a policy of replacing damaged items itself instead of paying out cash when a claim is settled.  Already, claims exceeding £100 for damaged carpets are passed to the retailer Carpet Land.

Companies are also putting up ‘excesses’ (sometimes to more than £200) to deter people from making small claims.

A spokesman for the Association of British Insurers said people with a valid claim had nothing to fear from the new crackdown but added, “Where there is evidence of fraud, companies are not hesitating to prosecute”.  Dishonest claimants may be put on a computer blacklist.

The recession has boosted fraud, but dishonest claims tend to rise in line with premium increases.  Householders have had to swallow swinging increases over the past two years – making household cover three times more expensive in some cases.  Yet fraud merely gives companies an excuse to push up premiums.

Here are a few of our favorite insurance claims jokes:

- Insurance brokers never retire, they just expire.

- Insurance brokers are premium lovers. 

- Insurance brokers do it with third parties 

- The farmer’s barn had burnt down and his wife called the insurance company and said, ‘That barn was insured for £180,000 so can I have my money’.  ‘It doesn’t work like that’ said the insurance company claims manager.  ‘What happens is that we assess the value of the barn and we will provide you with one on a like-for-like basis’.  The farmer’s wife thought about it and said, ‘Well, if that’s the case I’d like you to cancel the life insurance policy on my husband’

- A woman was in hospital when the doctor said to her, ‘I have some bad new for you.  Unfortunately you only have 3 months left to live’.  ‘Oh, that’s terrible news’ she said ‘Whatever can I do?’.  The doctor replied ‘You should marry an insurance broker’.  ‘Will that make me live longer?’ she asked.   ‘No’ replied the doctor ‘but it will seem longer’.

The insurance industry is not particularly well known for its humorous side although, we assure you, we in the claims industry do come across some ‘howlers’ when reading Claims Forms.  Below is a selection of our favourite ones that we have collected over the years from both our friends at insurance companies and by trawling through the internet.  They are all genuine so enjoy!

“As you are aware, my taxi has now been converted into a hearse and now I only transport dead persons.  So, obviously, my passengers are not at any risk, why are you making me pay a further insurance premium in case they are involved in a car accident?”

“I collided with a tree that was stationary.”

“I collided into a lamp post that was obscured by a human being”.

“My car slowed down but the traffic was much more stationary than I thought it was”.

“Because I am hard of hearing you’ll understand the reason that I didn’t see the cyclist”

“Someone who doesn’t know how to properly drive is going to borrow my car but before he does are you able to confirm that any damage is likely to be caused will be paid”

“I am stunned that you are refusing to pay me out for this accident simply because I wasn’t wearing my glasses.  I swear that the accident was no way my fault.  I simply didn’t see the cyclist when I ran him over”

Insurance is a necessity in the modern world where Mother Nature, poor drivers, thieves and accidents are just a handful of risks which can upturn your life and leave you and your finances vulnerable. Although it can seem like a needless expense, investing in insurance is the only way to prepare for the worst. With so many hazards at home, in the workplace and on the roads how do you know which types of insurance to choose? Below are 5 types of insurance which you should consider investing in.

1) Personal injury

We’ve all seen the adverts asking if we’ve been injured in an accident at work or in a public place but what would the consequences be if you actually did have an accident? You may not be able to work for a period of time and you may need to get help to look after your family or even yourself. Some of most common personal injury claims include road accidents, tripping, assault and accidents on holiday. Accidents can happen to anyone but if you work in a particularly dangerous environment, spend a lot of time behind the wheel or enjoy extreme sports, then you should consider investing in personal injury insurance.

2) Fire

All homes are at a risk from fire but the level of the risk will depend on what types of preventative measures you have in place. If you have a smoke alarm on every floor in your home and a fire extinguisher in the kitchen then your home is arguably less at risk. If the worst does happen then the aftermath of a fire can be extremely traumatic and even small fires can result in needing to spend money redecorating and replacing damaged furniture. It’s worth getting covered so that the aftermath of the fire is less of a financial burden and you can have the right help on hand.

3) Flooding

In 2006 the UK saw some of the worst floods on records with thousands of homes and businesses being wrecked by water across the country. This scale of devastation proves that it’s not just coastal or riverside properties which are at risk from floods and any low lying area could be affected. Arranging alternative accommodation, making repairs and replacing possessions is just the start of recovering from a flood and in some cases it take months for your home to become liveable again. Being insured can make the recovery process much smoother and also give you peace of mind if you are in a high risk area.

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