Procedures following a damage Clause Samples

Procedures following a damage. The insured must give the insurance company the opportunity to inspect the loss and co-operate in an amicable settlement. The insurance company will investigate the insured person's possible liability and negotiate with the claimant unless the restrictive conditions of the insurance are applied to the loss. If the insured indemnifies the loss or enters into an agreement or accepts a claim, this does not bind the insurance company unless the basis and amount of compensation are clearly correct. If the claim results in legal proceedings, the insured must inform the insurance company without delay. Compensation of lawyer’s fees and legal expenses requires that: ● the claim is related to an insured event eligible for compensation under the insurance terms ● the Insured immediately notifies the insurance company if settling the damage requires the use of an external lawyer or will lead to a trial ● the claim report is made to the insurance company before legal proceedings begin ● the insurance company has had the opportunity to appoint an advocate or other lawyer to represent the Insured. If the insurance company notifies the insured that it is prepared to settle with the injured party, within the limits of the sum insured, for the compensation of the damage, and the insured does not agree to this, the insurance company is not obliged to compensate the costs arising thereafter and does not undertake any further investigations in the matter.