Insurance Claim

An insurance claim is a written request that the policyholder needs to present in order to obtain the insurance benefits. Without an insurance claim, the insurance company will not release the money that the policyholder needs to pay for his emergency expenses. To save itself from a fraudulent insurance claim, the insurance company employs an insurance assessor who will investigate on the details listed on the policyholder's insurance claim. The main duty of the insurance assessor is to verify the authenticity of the insurance claim. The insurance company will only release the necessary monetary reimbursement after the insurance assessor reassures that the insurance claim is legal and valid.

Insurance companies sometimes reject an insurance claim because of two reasons: either the insurance claim is invalid or the insurance premium is unpaid. An invalid insurance claim is something that is false, exaggerated, planned, or imaginary. Examples of these are planned house fires, faked bodily injuries, staged car accidents, and inflated medical bills. Insurance companies will also refuse to release the necessary monetary reimbursement if the policyholder fails to pay for his insurance premium regularly. An insurance premium refers to a policyholder's payment obligation to the insurance policy and the insurance company.

How is an insurance claim processed?

Before the insurance company provides the policyholder with the necessary reimbursements, the insurance claim will first be analysed by the insurance assessor. The requested reimbursement will only be released after the validity of the insurance claim is confirmed. The insurance assessor starts his investigation by reviewing the insurance claim and interviewing the policyholder.

For a car or a boat insurance claim, the insurance assessor needs to check the damages made to the vehicle. He needs to talk to the mechanics, the boat builders, or the contractors to verify the details declared on the car insurance claim. If the insurance claim is meant for a real estate property, the insurance assessor needs to inspect the buildings and its contents. If the reimbursement will be used to pay for medical expenses, the insurance assessor needs to check the injured party's medical records to confirm the treatment methods.

Why do you need an insurance claim?

An insurance claim is important because it will serve as your formal request to avail of the benefits covered by the insurance policy. If you don't declare an insurance claim, you will not be able to receive the financial assistance that you need.