The act of an individual or organization protecting themselves against a financial loss is called insurance.After certain losses occurs the insurance protects the individual or the company from the loss.Insurance is sold by a legal entity or company called the insurance company or the insurer.The insurance company sell the insurance to the insured or the policy holder.The insurance agreement is that the insured will pay premiums of certain amount and the insurer will ensure that compensation is done in case of the occurrence of a loss.
The insurance policy is issued to the insured after the agreement and it contains the conditions and details of compensation.The formal request sent by the insured to the insurer asking for payment as stated in the insurance policy is called the insurance claim.Before approving the payment, the insurance company will review the insurance claim sent.The insurance company pays the insurance claim to cover the policy holder against financial losses.
There are many types of insurance claims like health insurance claim, property insurance claim and life insurance claim. The purpose of the health insurance claim is preventing individuals or companies from paying huge hospital bills that may cause financial damage.In the United States most hospitals have automated insurance claims thus the patient does not need to file a claim when they get to the hospital.The hospital thus will get paid for the claim by the insurance company.
The property insurance claim is very different from the health insurance policy.This is because in the property insurance claim the policy holder is the one filing the claim.A phone call or an email is then sent to the broker or the insurance company representative from the insured.Once they call the adjuster they make a report of the damages to the property of the insured.The adjuster then makes a formal visit to investigate the cause and the extent of the damage.The insurance company will then receive the conclusion remarks made by their representative on their behalf.Depending on the damage and the conclusion remarks, the insurer will either fully compensate or make payments for the necessary repairs.
Unlike the other insurance claims, this one is filed by the beneficiaries of the insured.The beneficiaries or claimant must take a written notification of death to the insurance company as soon as the policy holders passes on. The process of compensation then begins upon receiving the written notification from the claimant.The claimant indicates their name, the details of the insured, the cause of death and the date of death in the written intimation.The claimant is also supposed to deliver the death certificate of the insured, medical documents in case the insured was admitted in a hospital and the policy document.