Insurance is the process taken by an individual or a company to protect themselves from a financial loss.It is basically a risk management that shields an individual or a company against a certain loss.Insurance is sold by a legal entity or company called the insurance company or the insurer.The policy holder or insured is the person or company that buys the insurance from the insurer.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 conditions and details of compensation are contained in the insurance policy which is given to the policy holder after the insurance agreement.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.Thus the insurer will review the formal request and then approve the payment.To indemnify the insured against any financial loss the insurance pays the insurance claim.
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.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.They are different in that in the property insurance claim, the claim is filed by the insured.A phone call or an email is then sent to the broker or the insurance company representative from the insured.A formal report of the damaged property is thus given to the adjuster by the policy holder.An investigation is then carried out by the representative on the cause of the damage and the extent of the damage.After the verification the representative makes the conclusion remarks and forwards them to the insurance company.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.As soon as the policy holder passes on, the beneficiary must present a written intimation to the insurance company. The process of compensation then begins upon receiving the written notification from the claimant.The written document should include the details of the insured, cause of death, date of death and the name of the claimant.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.