Problem
A town at Red River in Manitoba suffered a windstorm along with heavy rains, and severe flooding. Many vehicles, homes, small businesses and factories are affected. The action taken by the public and some business owners suffering damages is varied, as some people who suffered damages, dealt with them in their own way.
Abdul took his damaged car to his friend who is an auto mechanic, to have it repaired, because he needed it for work. He did not report it to the insurer until later.
1. Outline what should Abdul have done, and explain why this is an issue for the insurance company with which he is insured.
The Nunez family had some shingles from their house roof blown away, which caused a minor leak in the roof, but they felt that the damage was small, and settled the matter themselves, and did not involve their insurance company.
2. Explain what should the Nunez family have done, and describe how their action could affect them in the future, with respect to the claim.
Sarah was injured from a slip and fall on her neighbour's slippery driveway, littered with debris after the windstorm passed. She was given some money by her neighbour for some physio treatment. Two months later, Sarah still had pains, so her neighbour reported the claim to the insurer.
3. Explain how the insurer at this point could treat the claim, and why could they deny it.
4. In all three of the outlined scenarios, if the brokers involved were first contacted, what is some of the advice a competent broker would give to each of their clients above, who sustained property damage or injury?
5. Describe the involvement of claims handlers at the various insurance companies involved.