Cash Selement Explained

The General Insurance Code of Practice

Crawford & Company subscribes to the General

Insurance Code of Practice (‘The Code’).

The Code ensures that the industry delivers claims

services that are fair, transparent and consistent. The

Code requires that we explain what a cash settlement

means in the context of your insurance claim.

What are my claim settlement options?

Work).

Replacement

This is where, with your agreement, we arrange

replacement of your lost, stolen or damaged property

using a supplier of our choice.

One, two or a combination of all three of these

settlement methods may be used to settle your claim.

What does a cash settlement mean for you?

A cash settlement may be oered so that you can

manage the repair or rectification works yourself. A

In some circumstances, where significant repairs

are required, accepting a cash settlement and

proceeding to manage the repair or rectification

works yourself may mean that your insurer will not

continue to insure your property or insure it under

the same terms and conditions. Your insurer will

notify you if this will be the case when discussing

a cash settlement. This may change once you are

able to evidence that the required work has been

completed.

How do we decide that you will be oered a cash

Some of these include:

• Where it would be unsafe to rebuild, or the local

consent authority prohibits rebuilding,

• Where the damage is minor,

• Where the item(s) claimed are rare and/or very

dicult to replace locally,

• Where the policy you have purchased gives your

rebuild or repair the property.

Crawford

Level 3, 324 St Kilda Road, Southbank, VIC 3006, Australia

ABN 11 002 317 133 - ACN 002 317 133 - AFSL 530816

Phone 1300 135 790

The makeup of a proposed cash settlement

A cash settlement can be made up of amounts that

represent dierent parts of your insurance claim. For

a preferred supplier of your own.

Your insurer may choose to repair damaged items

and pay you a cash settlement amount for items that

cannot be repaired.

Either way, your loss adjuster or insurer will explain

how the amount of your cash settlement has been

calculated including whether amounts have been

deducted thereby reducing the settlement amount:

• Amounts will be separately stated that represent

settlement for material damage to property and

called an ‘ex-gratia’ payment),

• A policy excess in accordance with the terms and

conditions of your cover,

• Your contribution for wear and tear, depreciation

or existing damage as agreed,

• An amount representing the cost of maintenance

included in the original Scope of Work that is not

covered as part of the claim,

• An amount that represents a supplier’s mark-up

that is not deemed reasonable, especially if you

• Reimbursement for claimable amounts paid for by

to minimise the extent of your loss or for the

discovered?

If further damage only becomes apparent after

repairs have begun, you may ask us to reopen

your claim, so that any additional damage can be

assessed. Should this further damage be accepted

as part of your claim, you may be paid an additional

cash amount that represents this additional

Your entitlement to independent advice

Acceptance of a cash settlement can have legal,

settlement oered to you or any aspect of the

loss adjuster or escalate your concerns by emailing

us at feedback@crawco.com.au. Your concerns will

be dealt with in accordance with our complaints

procedure which is governed by The Code. Details

can be found here Customer Support | Crawford

& Company | Australia (crawco.com.au). If, having

taken these steps, you remain dissatisfied, your

insurer oers a process for handling disputes. If

the matter remains unresolved you can contact

the Insurance Council’s hotline independently on