Requirements Where Loss or Damage to Persons or Property After an incident in which there has...

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Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage. Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage. Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage.