Insurance Claims

An insurance claim is a formal request made by a policyholder to an insurance company seeking coverage or compensation for a loss or event covered under their insurance policy. This request is made after an incident occurs that the policy covers, such as damage to property, medical expenses, or death benefits.

Here is how an insurance claim generally works:

• The policyholder notifies the insurer about the covered event and files a claim.
• The insurance company reviews and validates the claim to confirm the incident occurred and is covered by the policy.
• Upon approval, the insurer issues payment to the insured or an approved third party, which may be in one or multiple installments.
• The payment compensates for financial losses resulting from the incident, subject to policy terms such as deductibles and coverage limits.

Types of insurance claims include health insurance claims (for medical expenses), life insurance claims (usually filed by beneficiaries after the policyholder’s death), and property-casualty claims (such as for car or home damage).

Filing a claim can sometimes affect future premiums, especially in property-casualty insurance. The process typically requires documentation like proof of loss, incident details, and sometimes third-party information or official reports.

In summary: An insurance claim is the mechanism through which insured individuals request financial reimbursement or coverage from their insurer for losses or damages specified in their insurance contract.