|CURRENT STATUS AND DEVELOPMENT OF THE CASE|
|Some of the Trust Alliance’s claims in respect of the earthquake are still pending.
The reason for the delay in the claim payout is because the priority of the Taiwan authorities is to save human lives first.
The length of time taken to rescue victims had stretched for a relatively long period of time and it took insurers quite a while before they knew which losses are they involved in (covered or not covered under their policy).
In addition, the length of time loss adjusters took to assess the loss was also great because of the massive damage that the earthquake had inflicted on Taiwan. (Minimum time taken will take as long as 2 months)
|Another reason for the delay was due to the processing of claims. The amount of administrative work involved in an insurance company in processing a claim can be very tedious.
Added to these problems, if the insured's policy terms were not properly defined during the inception period, the cedant will have to negotiate with the insured on the settlement terms.
In spite of all these delays, some claims are paid faster than others due to:
(1) lesser complexity of coverage
(2) lower claim amount.