Companies are willing to pay out on claims

Service update

Companies are willing to pay out on claims

New systems mean clients can claim in resort

MENTION claims to an insurer and you are more than likely to hear a sharp intake of breath, followed by the assurance that no matter what the public perception, most claims are paid.

There are no figures to back that up, but the amount companies are spending to improve the way claims are handled seems to indicate a willingness to pay out.

Most claims are handled in the traditional way. A holidaymaker is delayed getting to resort, has an accident or loses personal belongings, and phones for a claims form on return. This is filled in and sent back to the company with any relevant documents, such as a police report if something has been stolen, or a receipt for an item that has been lost – to prove it did exist in the first place – and the claims handler decides whether or not to pay the claim.

However, new systems are emerging that allow clients to claim while still on holiday. Aon Suretravel policyholders who lose a camera, for instance, can make a claim while in resort – they still need documents, but these can be faxed to the company – and will find a replacement item rather than a cheque waiting for them on return.

Travel Protection Group has an agreement with its underwriters allowing its overseas reps in Spain, Florida and Cyprus to visit clients and settle claims worth up to £250 on the spot.

ABC Holiday Extras has a freephone claims service. Clients who call in are asked set questions by the claims handler, who can decide to pay the claim straightaway or agree to pay on receipt of certain documents. He or she might also defer a decision until the documents are received.

ABC Holiday Extras managing director Stephen Lawrence said: “It was a gamble as we could have ended up with more people making claims but in fact the number has fallen slightly and so has the average value of the claim.”

Cash in: firms are speeding up the claims process