The act of an individual or organization protecting themselves against a financial loss is called insurance.It is basically a risk management that shields an individual or a company against a certain loss.The selling of insurance is undertaken by a company or legal entity called the insurer or the insurance company.The company or the individual that buy the insurance from the insurance company are known as policy holders or insured.The transaction between the two is based that the insured pays small amount of money or premiums with the guarantee that the insurer will compensate in case the uncertain loss insured against occurs.
Upon agreement, the policy holder is issued with an insurance policy which contains the details and conditions of compensation by the insurance company.An insurance claim on the other hand is the request sent formally to the insurer by the policy holder asking for payment as per the conditions in the insurance policy.Before approving the payment, the insurance company will review the insurance claim sent.The insurance claim is paid by the insurer in order to cover or indemnify the insured against a financial loss.
The property insurance claim, the health insurance claim and the life claim are some of the common types of insurance claims. The purpose of the health insurance claim is preventing individuals or companies from paying huge hospital bills that may cause financial damage.The health claims in most hospitals in the United states are automated thus patient do not file claims manually.In this case the hospital is paid on behalf of the insured for the claim by the insurer.
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.The insured calls or emails the representative of the insurance or an adjuster or broker.A formal report of the damaged property is thus given to the adjuster by the policy holder.The adjuster then makes a formal visit to investigate the cause and the extent of the damage.The conclusion remarks made after the investigation are then sent to the insurance company by the adjuster.Full compensation or payment for repairs is dependent on the damages incurred and also the conclusion remarks made by representative.
The life insurance claim is filed by the beneficiaries of the policy holder.As soon as the policy holder passes on, the beneficiary must present a written intimation to the insurance company. This is to allow the insurance company to begin the process of compensation.The details included in the written intimation are the name of the claimant, the date of death, the cause of death and the policy holder details.The insurance company will then receive the following documents from the claimant, the death certificate of the insured, any medical document if the insured was hospitalized and the insurance policy.