The act of an individual or organization protecting themselves against a financial loss is called insurance.Insurance is a form of risk management that indemnifies the individual or company from a certain loss.The insurance company is the company or legal entity that provides or sells insurance.The insurance company sell the insurance to the insured or the policy holder.The transaction between the insurance company and the insured is that in the event the loss occurs, the insurance company will compensate the insured with the insured having paid the required premiums.
The conditions and details of compensation are contained in the insurance policy which is given to the policy holder after the insurance agreement.The formal request sent by the insured to the insurer asking for payment as stated in the insurance policy is called the insurance claim.The insurance claim is then reviewed by the insurer before payment approval.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. To prevent the individual or company from paying huge bill that may lead to financial damages is the purpose of the health insurance claim.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 health insurance and the property insurance are very different from each other.The policy holder is the one who files for the claim in the property insurance claim unlike in the health insurance claim.The representative of the insurance company or the adjuster will then receive the call or email from the policy holder.A formal report of the damaged property is thus given to the adjuster by the policy holder.The cause of the damage and the extent of the damages are then investigated by the adjuster.The conclusion remarks made after the investigation are then sent to the insurance company by the adjuster.Whether the compensation will paid fully or repairs will be made depends on the damage and the conclusion remarks by the adjuster.
Unlike the other insurance claims, this one is filed by the beneficiaries of the insured.The insurance company receives a written notification on the passing on of the policy holder from the beneficiaries. 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 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.