These days, having an insurance policy is a must — many people rightfully deem it to be a worthwhile investment, as well as a sturdy security blanket for any unforeseen circumstances that the future may hold.

Insurance policies are tailored specifically to your needs, meaning that one size certainly wouldn’t fit each person. Companies have particular policies that they are most confident their clients will benefit from in the long run, depending on what they predict might happen in the years to come.

The Two Kinds of Insurance Policies

Generally, there are two categories in which insurance policies can be divided: personal and business. Under these two kinds of policies, there are subcategories that will cater to each individual person’s needs.

Personal Insurance

• Life Insurance
• Accident and Critical Illness Insurance
• Home and Content Insurance
• Income Protection Insurance
• Tenant Insurance
• Landlord Insurance
• Lender’s Mortgage Insurance
• Travel Insurance
• Motor Vehicle Insurance

Business Insurance

• Public Liability
• Professional Indemnity
• Management Liability
• Farm Insurance
• Cyber Insurance
• Key Person Insurance
• Business Interruptions

How to claim your insurance

Claiming your insurance is actually quite easy. There are usually 5 stages for this very process:

First stage: The Incident

This is the event that is insurable — usually this would be a natural disaster or an accident. For instance, if your house were to get flooded, anything that happens to your home, even something as simple as a broken window, can be an insurable event, as long as you have a standing insurance policy.

Second stage: The Claiming Process

If you’re looking to claim insurance, the first step to take is to contact the insurance company. However, before you do this, be absolutely certain that you have collected all the relevant information you need. This will save you tons of time in the process to come.

Remain calm, level-headed, and collected when you talk to an agent. Only tell them details that are pertinent or related to the incident. Be careful to avoid making any statements which can be used against you.

If you can afford one, it’s best to talk to a lawyer first before calling the insurance company. They will be able to give you proper and professional advice. If a lawyer is out of the question, just keep in mind that your call is going to be recorded. Any irrelevant or erroneous statements made during the call may affect your claims.

After speaking with the insurance company, they will then be able to study which claims they will choose to approve or deny. They may also start investigating whether or not the claims you’ve made are true or false.

Third stage: The Internal Review Process

The insurance company is mandated by law to have your case reviewed by another employee, a different individual from the person who handled your case. This is for the purpose of studying it from a different perspective, especially when your claim has been denied.

However, it’s worth noting that most of the time, insurance companies do not change or waiver on their initial decision.

Fourth stage: The External Review Process

There are times where clients may not be happy with the decision of the insurance company. When this happens, they can seek the help and advice of the Australian Financial Complaints Authority (AFCA). Negotiations will happen and most likely a compromised agreement between the company and client will be the result.

If the AFCA has decided that the company should in fact, cover your insurance, then they must comply. On the other hand, if the AFCA decides that the company does not need to cover you, know that you are not bound by this decision. You may take the case to court.

Fifth stage: The Court Process

If you happen to reach this stage, this is where you will bring your claims to court as the insurance company has failed to compensate you. In other words, they have breached the contract and you have the right to file a case against them. A knowledgeable civil litigation lawyer in Melbourne will be well versed in such processes and hence, will be able to help you make insurance claims seamlessly.