Insurance Claims Recoveries – Keeping Claims Costs Down
Recoveries are the Bermuda triangle of the claims process, where recoverable funds are all too often lost, forgotten, or not given the priority they deserve.
To avoid the Bermuda triangle, gather all relevant information at the start of a claim. These will include quotes/invoices, Third Party information, insurance information, witness contact information, obtaining statements and applying for police reports, and so on.
The recovery process is then initiated, and with a strict diary system in place, your client’s money should be arriving in no time.
The mere thought of a high-value recovery raises the adrenaline, and the prospect of recovering $50,000, $80,000, or $150, 000 and presenting it to a client inspires a drive and determination that only a true “recoveries expert” can understand. It ignites the mind as you adopt a “hunter” mentality. These high-value recoveries necessitate arming oneself with as much information as possible as well as an unwavering strategy.
The higher the quantum, the stronger the opposition’s pushback. Nonsensical liability denials offering speculation as a defence and/or a smoke screen of deflection may be thrown your way, knowing full well that they will cough up the cash at some point.
Each party has a strategy, and it is your responsibility to be firm and at the forefront of your pursuit with sharp and concise communication outlining why the other party is clearly negligent. Consider the “I’m not going to entertain your illogical argument” strategy.
Be wary of the pitfalls of getting caught up in the process and failing to review your quantum on a regular basis. Consider how far you can push a recovery before deciding it is no longer cost effective to pursue.
All too often, we see a lot of emotion invested in low-value claims where the principle becomes more important. When you look back at the time you’ve devoted to a low-value recovery, the numbers don’t always add up, and you’ll discover that your efforts and resources have outweighed the quantum sought.
Be careful not to cross the line if you are frustrated with a debtor who is argumentative or abusive. Maintain your cool. It’s not personal, no matter how much it appears to them. We are seeing an increase in the number of uninsured third parties who owe large sums, and as a result, their livelihood will be impacted for years to come.
One must be careful not to lose one’s cool during communications with debtors and not violate the Australian Competition and Consumer Commission’s (ACCC) and Australian Securities and Investments Commission’s (ASIC) Debt Collection Guidelines; otherwise, you may find yourself in hot water and having to compensate a debtor for unconscionable behaviour on your part.
Thinking about outsourcing some of your insurance claims recoveries? Or would like more information on closed claims audits or our services in general, please contact me on Debt Recoveries Australia at firstname.lastname@example.org, telephone number 1300 799 511, or Skype at debtrecoveries.