when an event is a Catastrophe
According to the General Insurance Code of Practice, insurers are committed to respond to catastrophes:
...efficiently, professionally, practically, and in a compassionate manner.
According to their website, in what situation/s would the ICA declare an event to be a catastrophe?
The ICA will declare an event to be a catastrophe when it results in a large number of claims and involves multiple insurers. A catastrophe is most commonly declared after an extreme weather event such as a severe cyclone, bushfire, flood or storm.
Urgent financial need of benefits after a catastrophe
According to the ICA’s website, if a claimant experiences a loss or damage caused by a catastrophe, how can insurers assist the claimant if they are in urgent financial need of the benefits under their insurance policy?
- Insurers can fast-track the claim.
- Insurers can make an advance payment within five business days to address the immediate financial need.
- All claims are treated the same regardless of circumstance.
- Insurers can offer claimants an interest-free loan for a period of 12 months. After which, there will be a rate charged at the rate of CPI.
According to section 9 of the General Insurance Code of Practice, claimants can request a review of their claim if they believe your organisation’s assessment of their loss was incomplete or inaccurate (even if they sign a release).
How much time from the date of claim finalisation do they have to request a review of the claim?