How long should an insurance claim take?

Last updated on May 31st, 2024

Few of us can afford to wait too long to have something repaired or replaced but how long should an insurance claim take after it’s been submitted?

It depends on the claim, when you lodge it and whether there are any other complicating factors.

Under the General Insurance Code of Practice, the insurer should process your claim within fixed timeframes, and you can complain if you believe there have been unreasonable delays.

According to the Insurance Council of Australia, a decision is usually made within four months of receiving your claim.

 

 

However, this can blow out to a year if there are extenuating circumstances, such as:

• • You have not responded to the insurer’s requests for information
  • The insurer has difficulty communicating with you for reasons beyond their control
  • The insurer has a reasonable suspicion the claim might be fraudulent
  • You request a delay in the claims process

How do claims on insurance work

Before you make a claim, check your insurance policy and make sure you know exactly what you are covered for. Then ring your insurer and give as much detail about the accident or incident as you have.

Once you have lodged your claim, the insurer usually appoints an assessor within five days to look at the damage to your car or home and determine whether it is covered and get an estimate of what the repairs will cost. For example, if you’ve been in a car accident, the assessor may decide it is too expensive to repair the car and it is better to write it off for the fully insured value.

If you’re concerned the insurer is dragging the chain, it’s important to know your rights so you can speed up the process.

The insurer must contact you within 10 days of your claim being lodged to either reject or accept your claim or ask for additional information.

Sometimes the insurer might say they need an external report before they can decide the outcome. They must provide the final report within 12 weeks of your initial claim or tell you about the progress of the report every 20 business days. You are entitled to a copy of any information the insurer has used to process your claim.

   

How can I speed up my insurance claim?

If you feel your insurer has been dragging the chain unnecessarily, you can take action. Insurers must act fairly and reasonably and also consider your individual circumstances – for example, if you are experiencing financial hardship or mental health issues.

If you are in urgent financial need because of a disaster, such as a bushfire or flood, you can also ask your insurer to fast-track your claim.

Are you unhappy with how your insurance claim is progressing or has your claim been delayed necessarily? Lodge a complaint with us and we’ll help you handle it.