Accepting a payment without closing the claim
How to bank a part-payment while the amount is still in dispute.
When to send itBefore you sign any discharge voucher
Why it existsBusinesses accept a low offer because they need the money, and the signature on the discharge voucher then closes a claim that was worth far more. This letter says clearly that the payment is taken on account. Send it BEFORE or WITH the voucher, never after, and keep proof that you sent it.
To: [INSURER NAME] - Claims Department
Subject: Claim [CLAIM NUMBER] - Policy [POLICY NUMBER] - payment accepted on
account only
Dear Sir or Madam,
We acknowledge your offer of [AMOUNT OFFERED IN WORDS] in respect of the above
claim.
We are accepting this payment on account only, and under protest. It is not
accepted in full and final settlement of the claim.
The following remains in dispute between us: [WHAT REMAINS IN DISPUTE].
Any discharge voucher signed by us in connection with this payment is signed
subject to this letter, which is to be read with it. We expressly reserve all
our rights in respect of the balance of the claim, including our right to
pursue it through your grievance process, the Insurance Ombudsman or otherwise.
Please confirm that the payment is being released on this basis.
Yours faithfully,
[YOUR NAME]
[DESIGNATION]
[BUSINESS NAME]
[PHONE] / [EMAIL]10 brackets still to fill.
Fill it in here
nothing is storedType the answers and the letter above fills itself in. What you type is used to build the page and then thrown away; none of it is written down at this end. Close the tab and it is gone.
Before you sendKeep proof that it went. Email is fine and a delivery receipt is better. Nothing here is legal advice, and what your policy pays is decided by its wording and the facts of your loss.
Want us to word it for your claim instead? Report a loss or call 92514 56334.
Three deadlines
- Tell the insurer now, not after the assessment.
- Notice to anybody else responsible the carrier, the contractor, the police, within the time your policy sets.
- Every document within the time the insurer asks for it.