Insured but not covered

1 min read

I wrote about an insurance scam published approximately a year ago.  At the time, it created a bit of confusion with some insurance companies) explaining their side of the procedure and others supporting our position, describing some of the standard claims as scams.

A couple of advocates found the situation most interesting and offered to pass on any claim on the subject, which was refused since they felt these could give rise to interesting legal cases to be heard.

We now have additional information and updates on the subject, which strengthens our position of what is considered an insurance scam.

Although I do not want to appear as Don Quixote on the subject, it is evident that taking on an insurance company with a wealth of funds and thousands of euros to win is not an easy task.

Finding an advocate who responds on behalf of a claimant in a lawsuit is not easy, either.

First, because most knowledgeable advocates are “engaged” by an insurance company, they look forward to lucrative business from the insurance sector even if they are not.

So, you will experience that advocates hesitate to take on an insurance company and may even deter you from such a course of action for one reason or another.

Based on our experience as an office, I suspect this is the reason for difficulty securing an advocate.

It is important to note that you will most likely find that the Commissioner of Insurance is not interested in getting involved in such disputes, leaving the unfortunate people to defend themselves and carry out a legal battle for years (estimate 2-4 years) and spend thousands in legal fees.

Another case brought to our attention by a reader was of professional indemnity, where his company, which paid for the last 25 years paying hefty insurance premiums, submitted a claim to the insurance company that found all sorts of reasons and refused to pay out.

In their effort to refuse, they included bringing a UK expert on the subject into the discussions.

So, I wonder if it is worth having any insurance since unless it is a small claim, the insurance companies will not pay.

You will be surprised to hear that an ex-insurance boss told us, “Do not bother to insure your shop since the insurance company will not be there when you need it”.

In the event of a claim, he told us that the insurance companies have an “insurance companies board” where they apply to protect the insurers’ rights (have you heard of such a thing?).  Yet the board has not invited the claimant to submit their case against the Insurance company.

The unfortunate client had to compromise with a payment of €5,000 for his (quite legitimate, in my opinion) claim of €25,000.


By Antonis Loizou FRICS – Antonis Loizou & Associates EPE – Real Estate Valuers, Property Consultants & Estate Agents