The purpose of this section is to highlight the types of insurance that are available and how particular types of insurance policies may help to mitigate future risks that you face as a consumer.

If you need to make an insurance claim Consumer Affairs advises that you contact your insurance provider as soon as possible and ask them to send you a claim form. It is advised that you carefully complete the claim form, and that when you submit the claim form you produce a copy for yourself.

Before submitting an insurance claim it is recommended that you review the terms and conditions of your insurance policy and consider the following criteria:

• Whether you are within the time limits for making a claim;
• Whether you are covered for what you're claiming for;
• Whether there is an “excess clause” and if so, how much the excess is;
  • The excess is the amount of money that your insurer will take off the claim (i.e. the insurer will pay for the first $100 of the claim).
  • Depending on the excess clause it may not be worth making a claim if the amount you are claiming for is less than this.
• Consider any claims restrictions outlined in your insurance policy;
  • Make sure there's nothing in the terms and conditions that prevents you from claiming (e.g. you may not be the named beneficiary on the insurance policy).
• Whether your claim is seeking the repairs or replacement of high value items and if such a claim is covered in your policy;
  • The amount provided by the insurer will likely be less than replacement value as the insurer will consider the depreciated value of the items/good and account for wear and tear.
  • Does the amount of coverage provided to repair/replace the high value item justify the increase in your annual insurance premium?
• Whether it will be worthwhile to request an independent party to provide a quote to provide repair services and/or replacement.

It is important not to exaggerate your claim since this could lead to the entirety of your claim being rejected and you being subjected to an insurance fraud investigation. Given the risk associated with submitting a fraudulent insurance claim, when you submit your claim it is advised that you include copies of all paperwork that will support your claim (i.e. police reports, receipts to cover payment of repairs, medical certificates, etc.).

Consumer Affairs recommends consumers to ensure that all original copies of the supporting documentation provided in support of their insurance claim are kept in a safe and secure location in the event that their insurance claim is queried or refused.

When you try to make a claim on your insurance policy you may find that your insurer refuses the entirety of your claim or does not pay out the full amount you are asking for. Your insurer may refuse to pay your claim on the grounds that:

• The policy was not in force when what you are claiming for happened;
• The policy is invalid because you did not tell the truth when you applied for your insurance policy or failed to disclose something which could affect your claim;
• The policy is invalid because you deliberately or carelessly withheld information or misled your insurers;
• The item is not covered by your policy;
• There is an exclusion clause in the policy which means that you can't claim for what's happened;
• You did not tell your insurer about a change in your circumstances;
• You have not followed your insurer’s claims process correctly;
• You have not complied with a term or condition outlined in your policy; and/or
• You have exaggerated the claim and are trying to claim for more than you should.

Your insurer must give you a reason for refusing to pay your claim; whether partially or in full.  Upon receipt of your insurer’s refusal it is advised that you review the terms and conditions of your insurance policy carefully to make sure that their decision is reasonable.

It is important to note that sometimes a claim will not be covered by your policy.  This is called an uninsured loss (e.g. your home contents insurance policy may not cover the cost of replacing your spoiled refrigerator and freezer contents following a power outage).  

If your insurance policy includes an excess clause, this is also considered a type of uninsured loss. An excess is the fixed amount of any claim that the insurer will not provide coverage for (e.g. the first x amount of a claim must be paid for you by yourself).

In some circumstances your insurer may agree to pay some of your claim, but not the full amount. This may be because:

• You have under-estimated the total value of your claim;
• You do not have enough insurance to cover your losses (i.e. you are underinsured);
• Your insurer thinks that you have stated an unrealistic value on your claim;
• You have a “new for old” policy, where if the item for which you are claiming was old your insurer will pay you less than the cost of replacing it with a new item (i.e. reasonable “wear and tear”);
• There is a limit in your policy stating the maximum amount the insurer will pay for any one item;
• You have to pay an excess;
• You deliberately or carelessly withheld information supporting your claim; or
• You deliberately misled your insurers when you took out, renewed or changed your policy and the insurer would have charged a higher premium because of this.

If you think your insurer is being unreasonable in refusing the whole or part of your claim, you can try to negotiate with them. As part of your negotiations it is recommended that you provide the insurer with supporting documentation and evidence verifying that their refusal is unreasonable.

If you are not satisfied with the way your claim has been dealt with you can make a complaint using the insurer’s formal complaint handling process (i.e. complete and submit either a physical or electronic complaints form). If you are still unsatisfied with the insurer’s response to your claim, Consumer Affairs advises that you submit a formal complaint against the insurer by submitting a formal complaint with the Bermuda Monetary Authority.

If you wish to cancel an insurance policy it is advised that you review the terms and conditions of your insurance policy to confirm whether there is a cancellation clause. If there is a cancellation clause your ability to rely on such a clause may be available for a limited period of time or you may be subjected to a cancellation fee.

For example, the cancellation clause may stipulate that you may only cancel the insurance policy either before the insurance policy becomes effective or when you receive your policy documents.  If you are able to cancel your insurance policy you may be entitled to a refund of any premiums you have already paid on a pro-rated basis (i.e. your insurer may take off a small amount to cover days when the policy was in force) after having considered any cancellation fees that may be imposed.

If you are thinking of cancelling your policy because you’ve found a better deal with another insurer it may be easier and cheaper to wait until your policy is up for renewal and then switch.   However, it is important to note that some insurance policies are automatically renewed each year. Therefore, if you wish to switch insurance providers it is important to confirm when your policy is due for renewal so you can make sure that it is not automatically renewed.

Cancelling an automatic direct debit does not cancel your insurance policy. If your insurance policy is subject to automatic renewal and you cancel an automatic direct debt instruction with your financial service provider, you will still owe your insurer the premium. If you wish to ensure that your insurance policy does not automatically renew you must contact your insurer and communicate your desire to cancel the policy, orally and in writing.  Furthermore, it is a good idea to make sure you have a new policy in place with your new insurer before cancelling your existing insurance policy with your current insurer to ensure that you are not exposed to the risk associated with being uninsured.