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Insurance Policy Claim Conditions

Consumers considering taking out an insurance policy are being warned to check the claim process first as some companies have more stringent policies than others.

With a wealth of general and life insurance policies on offer making the right choice can be difficult but something important to consider is the claims process, according to one financial research company.

Insurance companies assess the risk of any eventuality and the potential downside associated with it and then based on past experience and expertise, the company calculates the 'premium' that a customer needs to pay to provide 'cover' against injury or loss.

Beyond the price of the premium, consumers trying to choose a policy are advised to take into consideration the claims process as a key deciding factor.

Some insurance companies will have stringent conditions tucked away in the small print, warns industry specialist Defaqto.

"How tight the claims management is will be a consideration," said Brian Brown, associate director, Defaqto.

"With some you have to report all claims within 24 hours and some companies stick to this to the second. Others may ask for a copy of the exact receipt."



19/05/2006
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