Technical bulletin 36 - The offering and payment of rewards in insurance claims

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The offering of a reward in return for information that may lead to the recovery of property subject to an insurance claim is a useful tool available to Insurers. However, it should not be used lightly or routinely.

Rewards are typically offered in relation to high profile or high value claims, particularly when speed of response is an issue and when conventional lines of enquiry become slow or unproductive.

However, the offer or payment of a reward can bring a number of difficulties. It is important to not make a reward payment to the thief, or to one of a group of people who organised the theft simply to make and receive a reward payment.

This document explores some of the issues that adjusters should discuss with their principals when a reward is being considered.