Some losses that occur fall outside the scope of the policy. The policy cannot indemnify the insured. In some situations, it may turn out that the insured is going through a lot of hardship and the reason that the risk was not covered was because of genuine oversight. For example; in a householders policy, the list of individual houses in a condominium was not complete due to total oversight and a fire occurs.
In very special cases, discretionary claim settlement is considered by the insurers. The intention is to mitigate the hardships faced by the insured. So the claim is considered even though there is no legal liability to pay for such losses.
Ex-gratia claim settlements are not made to indemnify the whole loss and only a certain percentage is paid. There is no obligation for the insurers to meet similar claim situations in the future.
No comments:
Post a Comment