QUESTION:
Insured lost phone and lodged a claim for it. The insurer took over two weeks to lodge and review it. Because it is a phone and was for work purposes, the insured had to buy one ASAP, which they did for $999.
The insured has finally come back and offered a settlement based on their cost price of $900.
I don't think it's reasonable for the insured to be penalised for the insurer's delays and that they should be settled their costs. Noting that the device is the same and is like for like.
I've reviewed the policy wording and cannot see anything that mentions that the settlement should be based on any insurer discounts.
EXPERT ANSWER: Crossley Gates, Keegan Alexander
Insurers are required to settle claims within a reasonable period of time in all the circumstances.
In the circumstances of this claim, two weeks seems unreasonable, especially if the urgency was communicated to the insurer.
Any compensation is outside of the policy and is technically for a breach of it. If the insurer belongs to the ICNZ, then your client could seek redress under the Fair Insurance Code.
