Claims and Response to Claims Meaning of Claims

Claims and Response to Claims

Meaning of Claims: • 1. Legal demand or assertion by a claimant for compensation, payment, or reimbursement for a loss under a contract, or an injury due to negligence. • 2. Amount claimed by a claimant.

Basic components of a claim letter example • To write an effective letter of claim template, consider the following: • Describe the product’s defect or the substandard service you experienced. • Be sure the information you will provide is clear, direct and as much as possible be very detailed in your explanation. • Such information will prove its worth for the purposes of re-checking. Having this data will facilitate the checking of the actual product by the supplier.

• If the issue is about a product, it’s important to include the following elements: • product’s name exact date when you purchased the product the date when the product arrived how much you paid for the product’s model number the product’s color and size • You should direct the claim letter example to the manufacturing company so it could appeal to their sense of fairness, pride, honesty, and reputation. • Taking immediate action to remedy the situation will work in their favor. • The letter should directly state a request for the remedy or adjustment which you think is fair enough to fix the problem.

• How to write a claim letter? • Claim letters usually target a company’s products or services deemed unsatisfactory, and there is a need for adjustments. • For instance, a company has outsourced the production of a part required for a final product. • If the company deems that the work done by the contractor isn’t up to specifications, that company can write a letter of claim template demanding a more superior product. • Because of such, the letter should carry a very formal and serious tone.

• Here are some important factors you may consider when writing a claim letter format: • Indicate at the start of the letter that you’re making a claim then specify the type of claim you’re making. • If applicable indicate the policy number. • Explain the specific details or circumstances of your claim. Make sure to mention all the significant facts about the claim. • State the amount you intend to claim or the action the reader should take along with the date they must carry out such actions. • Attach any documents relevant to your claim. These could include your claim letter, claims forms, warranty, repair estimates, records, and receipts.

• You may use some relevant documents to support your claim. As such, make sure to mention the contents of the documents specifically and illustrate why they can back up your claim. • Determine a date when you want to receive an answer then include your contact • At the end of the letter, make sure to politely thank the recipient for her/his assistance. • Using threats, accusations, and other hints of intimidation would diminish your chances of your request getting accepted or entertained by the company. • Enumerate the exact steps you need to take and how long you can wait for their reply.

• Practical tips for writing a claim letter example and other related letters • You may refer some letters to client contacts, existing or prospective customers to inform them of some schemes or offers that will help them make great savings. • The goal of such exciting offers, of course, is to make more money. • Writing such letters gives an opportunity for customers to make great profits at the same time inform them of the company’s changes in supplies, rates, new offers, and more. • You can also use the letter to introduce a new product to its new or existing customers. • Providing them the updates can further improve and maintain a good relationship in business.

• But keep in mind that whether you have a service or product that’s considered “top of the line, ” you will eventually, receive complaints. • But think positively because client complaints and claim letters examples can be huge assets for the company. • Claim letters and customer complaints are tools that can immensely improve your business for these would tell you what’s wrong with your products or services. • Letters to prospective customers that are warm and helpful can maintain a business relationship with them for a long time.

• Types of claims which may warrant a claim letter example • Claim letter formats are usually written by disgruntled buyers, complaining, and demanding compensations from the sellers. Generally speaking, a buyer writes the claim letter to a seller. • However, there are instances when the buyer composes a complaint letter to an agency, for instance, the transportation authority, seeking compensation because of damages caused by negligence. The seller may also send a claim letter to the buyer making their own demands. • Dissatisfied buyers write claim letters to sellers, seeking compensation. Calling the agency or the seller may be the easiest way to settle the claim, but a claim letter is much better because it’s written documentation of the customer’s dissatisfaction. • The possible adjustment or compensation asked by claim letters aren’t always the same, and the kind will depend upon the nature of the loss or damage.

• The buyer may write a letter for the following claims: • Full or loss refund of the service or product’s purchase price. • Delivery of your products again but this time with the right items. • Replacing defective products. • Repairing damaged products. • Reducing the price of the product. • Crediting the full amount to your purchase account. • Canceling the order or part of the order. • Rescheduling payment installments. • Correction of any mistakes in the bill.

• Considerations when denying claims • A claim letter example is a letter of persuasion where a customer writes an agency or a business about some problem with their product or service. • Simply worded, it’s a letter of complaint which demands a request for an adjustment in the form of a refund or a replacement or payment for damages. • A claim letter isn’t a guarantee for compensation as some of these claims get denied.

• For the seller, when you deny a claim, include the following in the letter: • Open the letter by giving a statement about your regret that you have to deny the claim. • State the reasons for denying or rejecting the claim. Attach any documents as evidence to substantiate the denial. • Include any information that the claimant can use so that the claim can get approved if the latter so desires. • Include relevant dates, like the date when the client can make a resubmission or appeal if applicable. • Add the contact details of the person who the customer should address the appeal. • Reiterate your regret for having to deny the claim and express a willingness to discuss the issue further or find solutions to the problem. • Close the letter by stating how important the reader’s business is to you or that you value the customer.

• File a Warranty Claim • Sample Letter #1 • Two weeks ago I received the enclosed pruning shears, ordered from your spring catalog. I was trimming a lilac bush, a relatively simple task for a pair of shears, when the handle split in two. The terms of the warranty indicate that if I am not satisfied, I am entitled to receive a full refund. I want my money back, including my shipping costs, so I have enclosed receipts for the shears and for the shipping. Please send the check to my home address shown on both the check and this letter.

• Sample Letter #2 • Just over four months ago I purchased an outside CV joint from you. I am already hearing clicking noises when I turn right, indicating that the joint has gone bad. Of course, one of the selling points of this part was its one year warranty. I assume that you will repair or replace the part under that warranty. I am returning it and have enclosed a copy of the purchase order. • I will appreciate your prompt response since I am unable to drive my car without the joint. Thank you.

• Sample Letter #3 • My new extension ladder does not extend. The channel is obstructed by excess metal. As this ladder was purchased only one month ago, and carries a 90 -day warranty, I hope you can replace it promptly with a functioning unit. I thank you for your prompt attention in this matter.

• Letters to Business Partners • Letters to business partners are letters you write to people with whom you have some degree of involvement with their business dealings. • A business partnership is a legal relationship formed when two or more people agree to run a business together are co-owners. • When you make such a partnership, you need to write a letter to your business partners to convey your message clearly and strongly, and to keep a legal record of the partnership. • The letter should be formal and must contain the partnership offer, names of all the business partners, and the terms and conditions of the partnership.

• Letters to business partners should be written with a professional tone. • They should conform to all the accepted business letters standards. State the purpose of the letter. • Give all the necessary details regarding the partnership as outlined in the contract. Include the name and title of the recipient. • Employ the appropriate formal salutations and closings. • State the date clearly and mention any document that is enclosed with the letter. • Close the letter on a positive note and sign it off with your name and title. Letters to business partners should be printed on the company's letterhead.

• Example Letter • Drivers Co. 3489 Greene Ave. Olympia, WA 98502 August 17, 2001 • Richard Brown, President Document Makers Salem, MA 34588 • Dear Mr. Brown: • As someone who has worked with your company for over 3 years, we were very disappointed to see the documents you produced for our latest Drivers Co. publicity campaign. • As our written agreement stipulated, we expected full-color leaflets with fancy explanatory texts, but instead, we found that black and white photos had been included in the prepared leaflets. I think you will agree that a communication problem exists. • We would like you to send out a photographer to provide us with the promised color coverage or provide us with a refund. • Yours truly, • (signature here) • Thomas R. Smith, Director • TRS/lj

• Claim Letter Template • From, • _______________ • Date: _______(date on which the letter is written) • To, • ______ • Subject: Claim letter • Dear Sir/ Madam, • I am ______ (name) writing this letter to you to declare the schemes and offers on behalf of our company that is ______ (name of the company). On this Diwali, we have declared festive season offers. We are delighted to meet your needs and consider it a compliment each time you place an order. • In appreciation for your business, we have included a coupon for 10 percent off any service for every product in your fleet. If you place an order between 01. 11. 2013 to 15. 11. 2013 then you can avail these offers. • We will also sell regular products prices in this period. So if you want to gain huge profits, then you can place big orders in this period. You can also buy larger quantities. These offers are for all our important customers, and you are one of them. • We encourage you to contact us regarding this special offer and to consider us your one-stop service center. At e. Bay, we are committed to providing superior care. Again, it is a privilege of servicing you. Hence you are requested to be benefited by these offers. • Hope to hear soon from you. • Thanking You. • Yours Sincerely, • ______

• Sample Letter • The following is a Sample of a Claim Letter. • From, • Shvetlana Singh, • Bhalla Enterprises, • Delhi. • 6 th December 2014 • To, • Shivaay Singh Oberoi, • Oberoi Industries, • Delhi. • Subject: sample credit letter • Dear Sir, • Warm wishes. • Doing business with you for the past five years has truly been a pleasure, and we hope to continue this rewarding relationship for years to come. We are pleased that we can provide you with flawless products each year, and we are indebted to you for recommending us to your professional and personal associates. Because your support means so much to us, we want to say thank you for this. • We feel very good to announce various schemes and offers for our honored customers like you. We have arranged special festive season cent percent discount & concessions for all the orders for a new and old range of products. • Kindly note that this is not stock clearance offers but we will present you with fresh stock. The offers are Diwali special, and hence they are for a limited period of 01. 11. 2013 to 1511. 2013. We suggest you place your order between these periods so that you can avail such offer and make a profit. Moreover, for a limited period, we are reducing the prices for all items in our catalog. • Hence you are requested to take advantage of the same. You can order for larger quantities or heavy consignments so that you can make good profits. As you know, your satisfaction with our company products is the top priority. Waiting for a huge response from your side. Hope to see you soon regarding this. • Thanking You. • Yours Sincerely, Shvetlana Singh.

• • • • Email Format The following is the Email Format that should be followed while writing a Claim Letter. To: name@email. com From: name@email. com SUBJECT: Sum Assured against the death of my father Dear Sir or Madam, Warm Greetings. I, ____ (name) had taken a life insurance policy from your company against policy number ______ on _____ (date) for my father, ______ (name of father). The nominee of the policy is my mother, ______ (name of mother). With deep regret, this is to inform you that my father passed away on _____ (date) due to a massive heart attack. I have attached a copy of the doctor’s report as well as the death certificate for your reference. Even though nothing can repair our loss but since my mother was dependent on him and she was the nominee of the policy, I would like to file this claim with you. May I request you to please release the money due to my mother against my father’s life insurance policy at the earliest. As per our records the sum due to her is Rs. ______? I understand that there are several things in your account that you would have to change, and I would like to let you know that we take this very seriously as we are in the urgency of money. Please do not hesitate to contact me via e-mail if I can be of any further aid. We look forward to a quick resolution to our claim. Thanking you in anticipation. Best regards, ________ (Name of person writing the letter)

• GUIDELINES • Be polite and formal in the tone of the letter. • Mention the previous letter you received. • Give a brief yet concise response to the claim letter sent to you. • End on a positive and courteous tone.

• SAMPLE LETTER • [Senders Name] [Address line] [State, ZIP Code][Letter Date] • [Recipients Name] [Address line] [State, ZIP Code][Subject: Normally bold, summarizes the intention of the letter] -Optional • Dear [Recipients Name], • I have received and read the letter which you have sent me regarding the claim that you are making regarding the events of December 2, 2008. I am happy to inform you that your claim has been examined and verified, and we wish to settle your claim according to the amount that you have stipulated. We will be sending you the details of the meeting we will be having soon about the settling of the claim. I wish you a good day. • Sincerely, [Senders Name] [Senders Title] -Optional • [Enclosures: number] - Optional cc: [Name of copy recipient] - Optional -

Acceptance of Claim Letter

Door Number and The Name of The Street, City with ZIP Code. Phone : 0011 – XXXX Fax : 0011 - XXXX DATE: To The Manager, ZZZZZZ Business House, Door Number and The Name of The Street, City with ZIP Code. Phone : 0011 – XXXX Fax : 0011 – XXXX Dear Sir, We are in receipt of your letter of the 20 th instant containing your claim for 3780 cases together with the Insurance Policy, Supplier’s Invoice and the Surveyor’s Report. Your claim has been accepted and we enclose our cheque I. R. 3527 dated 29 th January - 2008 for $ 3780 in full settlement thereof. Please return the enclosed claim voucher duly discharged. Thanking you. Yours Faithfully, Vasu Manager For XXXXX BUSINESS HOUSE

Refusal of Claim Letter

• Sample Letter #1 • We are sorry to learn of your misfortune on Lake Springfield when your propeller broke. We have determined from the picture you sent that the 3 HP motor was one that we sold over five years ago, and we no longer stock that model. Of course a five-year-old motor is beyond any warranty period, so we will not be able to replace the blade. However, we do carry a large stock of universal propellers, which we offer at reasonable prices. Please come by the store and we will be pleased to help you.

• Sample Letter #2 • We recently received your request to cancel your life insurance policy and refund your premiums. We are sorry that you feel unable to continue paying on your policy. • As for canceling your policy, if you choose this option, we would be willing to transfer your premiums to a new term policy. Otherwise, you will forfeit your premiums. If you decide to convert to term insurance, please complete the enclosed forms and sign in the space provided. If, however, after considering term insurance, you decide that you prefer to cancel your policy altogether, please call 555 -5555, and we will be happy to oblige you. • Thank you for your business. We look forward to serving you in the future.

• Sample Letter #3 • Please know that Doe Auto Supply regrets your dissatisfaction with the seat covers you purchased last May. You are correct that the seat covers came with a warranty. In order to receive a refund you must return the seat covers in their original packaging and with the store receipt. These conditions appear on the box the seat covers came in. We will comply with our warranty as soon as we receive these items.

Settlement of Claim Letter

• Sample Letter #1 • This is with reference to my unit link Insurance plan with ABCL Insurance private ltd which was started in the year 2011. As per the terms of the plan, a partial or complete withdrawal is allowed after paying three consecutive premiums annually. I have paid Rs 75, 000/- annual premium over the last three years. Due to some urgent requirement, I would now like to withdraw my entire sum assured at the current NAV. As assured that the claim settlement for this plan is done within 10 days, I request you to kindly settle my full claim and close this plan. The details of the plan are as follows: Policy Number: ABCLULIP 007 Name of the insured: Raj Gandhi Annual premium: Rs 75, 000/The premium receipts are attached for your reference. Thanking you and hoping to receive the cheque for full and final settlement on or before March 09, 2014

• Sample Insurance claim Demand letter [Sample Letter #2] • This is to bring to your kind attention that I hold an accidental insurance policy with ABCL Insurance Ltd since 2009. On February 01, 2014, I was hit by a truck while I was on my evening walk. Before, I could note the number of the truck, it disappeared. I was rushed to the hospital by my neighbours and have been diagnosed with a fracture in two ribs and a knee dislocation. I have been discharged from Hemraj Jain Hospital, C-52, Janak Puri, New Delhi – 110058 today morning. The details of the expenses incurred by me are as follows. I would like to get my claim for the same at the earliest against my accidental insurance plan. Policy Number: ACCP 0987 X – Ray Charges: Rs 1000/Hospitalization charges: Rs 5000/- (Rs 2, 500/- per day) Medicines and ointments: Rs 1500/Total expenses: Rs 7, 500/The medical bills and hospitalization papers are attached for your reference. Thanking you!

• Sample Insurance claim Withdrawal letter [Sample Letter #3] • I would like to cancel my life term insurance policy with ABCL Ltd. I have been really dissatisfied with your agent and the services provided by him. Hence, I request you to cancel my policy today and send me a confirmation letter for the same. As per the policy features, thirty three percent of the total premiums paid will be cancelled as service charges in case the policy is cancelled before maturity. You may kindly send the cheque for the remaining amount along with the cancellation letter at the earliest. The details of the policy are as below: Policy Number: ABBC 0987 Name of the insured: Mr. Raj Sharma Annual premium: Rs 75, 000/Number of premiums paid: three Thanking you!

• Sample Insurance claim Appeal letter [Sample Letter #4] • This is with reference to my letter dated January 15, 2014 where in I had submitted my claim letter and all the supporting documents against my Unit Link Insurance Policy number ULIP 00987 requesting for immediate release of my claim. According to the policy features, the claim is settled within two weeks of receipt of all the documents. However, I have not received the claim nor any communication from your end regarding the same. My daughter is getting married next month and I am in immediate need of funds. This is the reason this request was sent to you in January but even after a month and a half, no action has been taken from your end. Hence, this is an urgent appeal that kindly release my claim at the earliest and make this association a stronger one. Thanking you!

• Sample Insurance claim Dispute letter [Sample Letter #5] • This is with reference to my letter dated January 15, 2014 where in I had submitted my claim letter and all the supporting documents against my Unit Link Insurance Policy number ULIP 00987 requesting for immediate release of my claim. I have received the claim cheque today from your end. However, I am really disappointed that the amount received is only Rs 1, 00, 500/-. As per the policy features, the amount is calculated at the NAV of the day when the request for cancellation of the policy is received. On January 15, 2014 when I had initiated this request, the NAV was 1. 56. According to that, the total amount that should be paid against my policy should be Rs 1, 05, 000/I would like to know why I have received Rs 4, 500/- less in my claim. Kindly provide me an immediate explanation along with a fresh cheque to avoid any legal action against ANBCL Insurance ltd. Thanking you!

• Sample Insurance claim Settlement letter • This is with reference to my unit link Insurance plan with ABCL Insurance private ltd which was started in the year 2011. As per the terms of the plan, a partial or complete withdrawal is allowed after paying three consecutive premiums annually. I have paid Rs 75, 000/- annual premium over the last three years. Due to some urgent requirement, I would now like to withdraw my entire sum assured at the current NAV. As assured that the claim settlement for this plan is done within 10 days, I request you to kindly settle my full claim and close this plan. The details of the plan are as follows: Policy Number: ABCLULIP 007 Name of the insured: Raj Gandhi Annual premium: Rs 75, 000/The premium receipts are attached for your reference. Thanking you and hoping to receive the cheque for full and final settlement on or before March 09, 2014.

• Exercise • Q 1. As the manger of big departmental store you have received from one of your customers a letter complaining of inactivity and inattention when he visited your store. Draft a reply, expressing regret and promising full investigation.

• Q 2. As the purchase officer of an organization you had ordered 12 dozen bed sheets after examining the sample sent by the wholesaler. When the consignment arrives you find neither in texture nor in shades do the sheets conform to the samples you had approved. Write a claim letter demanding their replacement • Draft a suitable reply to Exercise 2(i) accepting the mistake, offering replacement and promising greater care in future. Invent the details

• Q 3. A month ago A. K. Sharma and Company Ltd. , 35, Bapunagar, Jaipur bought a duplicating machine from a firm in delhi. The machine does not work satisfactorily. As secretary of this company write a letter (to the delhi firm) giving the details and asking that either it be repaired or replaced at their cost.

• Q 4. You are the sales manager of Lal General and electrical Stores, Daryaganj, Delhi – 110006 and you have received an angry letter from one of your customers about the defects in an electric toaster he bought from your stores a week ago. Draft a suitable reply. •

• Q 5. The office manger of a company has asked you to replace the lot of 30 type writers he bought from you ten days ago. Draft a suitable reply, refusing replacement but suggesting an alternative which you think will satisfy them.

Thank you