Case Study: RECLAIM Consulting (Property Damage)
A client suffered a loss and filed a claim for impact damage to a forklift truck at a UK port when a third party lorry “side swiped” it, knocking it over. Claim costs involved repairs to the forklift truck and temporary contract staff to cover the absence of the employee that was injured.
RECLAIM inherited the case three-and-a-half years into its life after the handlers were unable to get any meaningful response or any settlement offer from the third party insurer.
Shortly into RECLAIM’s involvement (and following constant pressure on the third party insurer), a settlement offer was received of GBP10,000 against a claim of GBP16,306. This was considerably less than the claim amount as the third party felt there was a lack of original documentation (i.e. initial receipt) for the forklift ― we were unable to prove the pre-accident value, and the third party also had concerns over the labour as it had already paid the employee’s loss of earnings.
RECLAIM understood that the original documentation for the forklift was not available as the plant was hired to the client, but were unwilling to accept the settlement. We therefore undertook further enquiries:
- We rang the original supplier and asked for the make/model/serial number and year of manufacture of the forklift. This established that the forklift was only a year-and-half old at time of incident, and the supplier confirmed the value of the forklift was worth considerably more than the repair cost.
- We undertook an internet search for equivalent second-hand forklifts available to buy today. The search proved that, some four years after the incident, the replacement value today is still more than the repair cost at the time.
- Finally, we were able to confirm that the “loss of earnings” paid to the employee was for losses above his basis wage (i.e. overtime and bonuses), and therefore the contract labour was not the same claimed item.
The above points were put by RECLAIM to the third party insurer, who could not argue with the findings. The GBP16,306 claim was then paid in full without further argument.
The client was delighted with the diligence shown by RECLAIM.
About RECLAIM Consulting Services
RECLAIM Consulting Services (RECLAIM) is a leading provider of claims management and recovery services. For further information, please visit our page on uk.marsh.com.
This case study is for illustration purposes only and should not be relied upon as governing your specific facts and circumstances. Actual claims are governed by your specific policy terms, conditions, limits and exclusions and are subject to individual claims review by applicable insurer representatives.