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.The selling of insurance is undertaken by a company or legal entity called the insurer or the insurance company.The insurance company sell the insurance to the insured or the policy holder.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.
The insurance policy is issued to the insured after the agreement and it contains the conditions and details of compensation.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.To indemnify the insured against any financial loss the insurance pays the insurance claim.
There are many types of insurance claims like health insurance claim, property insurance claim and life insurance claim. The purpose of the health insurance claim is preventing individuals or companies from paying huge hospital bills that may cause financial damage.In the United States most hospitals have automated insurance claims thus the patient does not need to file a claim when they get to the hospital.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.This is because in the property insurance claim the policy holder is the one filing the claim.A phone call or an email is then sent to the broker or the insurance company representative from the insured.The insured then reports the damages incurred to the representative of the insurance company.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.
The beneficiaries of the policy holder are the ones who file the life insurance claim.The beneficiaries or claimant must take a written notification of death to the insurance company as soon as the policy holders passes on. The process of compensation then begins upon receiving the written notification from the claimant.The claimant indicates their name, the details of the insured, the cause of death and the date of death in the written intimation.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.