Once a car insurance company has processed a claim there are a number of possible outcomes – the insurance company can accept the claim and pay out a settlement amount in the case of a total loss, or it can decide to repair the car in case of accidental or other damage. The company can also decide not to pay out a claim and must advise the insured party in writing of this decision as well as the reason why it is not going to meet the claim. The claim in then declared closed.

A re-opened claim is a claim that has previously been closed, but for some or other valid reason needs to be re-opened. There may be a number of reasons why a car insurance company needs to re-open a claim it has previously closed:

• New facts may come to light that will have a direct bearing on the decision of the insurance company and it needs to review the new information and make a new decision.
• The insured person may disagree with the decision made by the insurance company and decide to take the case further: the insured can either institute formal legal action against the insurance company or
• The insured can approach the office of the Short Term Insurance Ombudsman to act as a mediator to try and resolve the case.

Decisions by both the Ombudsman and the Court will be binding on the parties concerned.