Accident Management Company or Insurance Company: Know the Difference
Car accidents are a frightening thing to go through and dealing with the consequences after the fact, such as your car repairs, insurance claim and legal problems, can get pretty overwhelming. In these cases, people might look to an accident management company (AMC) or their insurers for help. Although they both provide support in the wake of accidents, there are some key differences. A comparison between Accident Management Companies and Insurance companies is discussed in this article, What they are given to do, what they service, how it works.
Roles and Responsibilities
Accident Management Company (AMC)
Generally an AMC provides a support to the persons who met with accidents in terms of vehicle recovery, repair, replacement, insurance claim processing etc.
The main objective of an AMC is to make the post-accident procedure easier for the people and to provide them the guidance and support they need.
Insurance Company
Insurance gives you financial protection against the uncertainty of accidents or other unexpected events.
Basically insurance company has 3 main parts i.e. to Evaluate the claims on the basis of whether a loss has taken place, what the loss was, and to what degree, to decide who is at fault, and pay the policyholders as per the terms mentioned in the policies.
Services Provided
Accident Management Company (AMC)
AMC private establishment provides complete solutions to individuals who have faced an accident and now wondering as to how they will manage their life after that mishap. This includes the booking of transport, arranging vehicle recovery and repair, providing temporary replacement vehicles and assistance with insurance claims and legal purposes.
They may also come to the rescue of accident victims, by acting as a one-stop shop for services; working with different service providers on their behalf.
Insurance Company
Insurance companies focuse more on claims processing and compensation of the insured.
Although insurance companies might provide some services like facilitating car repairs or coverage of a rental car, they are bound by the terms of the insurance policy to first satisfy their contractual obligations.
Cost and Fees
Accident Management Company (AMC)
An accident management company AMCas the name suggests, AMCs are experences in accident management issues.
Normally, AMCs will charge for their services that likely include service fees by coordinating repairs and insurance claims, and referral fees from repair companies.
Although the price for using an AMC can last depending upon the provider and even especially what the services that is definitely necessary depend on.
Insurance Company
Policyholders are required to pay their premiums to insurance companies in return for their insurance coverage.
Policyholders may have to pay deductibles or co-pays when making a claim, but the bigger price of insurance policy may be the premium paid for coverage.
Customer Experience
Accident Management Company (AMC)
The goal of AMCs is to make the road to recovery a less stressful, more personable experience.
Providing an array of services and acting as the sole point-of-contact, AMCs endeavour to ease the process of collateral valuation and limit the hassle for their clients.
Insurance Company
Despite their position that they are only good faith members of the community interested in simply expeditiously and fairly adjudicating claims, the reality is that insurance companies purpose is to protect their financial interests.
Insurance companies do intend to deliver a good customer experience; however, at the end of the day, their decisions are based on the terms and conditions of the policy.
Conclusion
There is a significant difference between the roles that accident management companies take and those that insurance companies play when an individual is involved in a road accident. AMCs offer a set services to the common man to help the ease the process, while the insurance companies basically manage the claims and pay off the compensation Incase there is a claim. They each fill an essential role in providing help to those experiencing hardship, and making sure those needing assistance have the help they need.