An insurance claim is a request made formally to an insurance company for compensation or coverage for a policy event or covered loss.

The claim is validated by the insurance company, and after approval, it issues the insured or an approved interested party payment on the insured’s behalf.

Insurance claims cover all ranging from insurance policies to death benefits among others. In lots of cases, third parties can file claims on the insured individual’s behalf, but typically, only the individual or individuals recorded on the policy are qualified to claim payments.

How Different Insurance Claims Work

Health insurance claims

The fees to for inpatient hospital stays or surgical procedures are quite pricey. When providers help policyholders in filling out health insurance claims, it does not need that much effort from patients. In 2011 over 90 percent of claims were settled electronically. Where the providers do not partake in electronic transmittals, policyholders need to file paper claims.  This kind of insurance claim aids in protecting an individual from the possibility of spending vast amounts of cash as a result of illness or accidents.

Property and Casualty Claims

As opposed to health insurance claims, the policyholder has the responsibility of reporting damage of a property he owns. Dependent on the kind of claim, an adjuster assesses and inspect damage to property to determine payment. Once the adjuster verifies the damages, he kicks off the process of reimbursing or compensating the insured.

Life Insurance Claims

These need the submission of a death certificate, claims form and sometimes the real copy of the policy. The process, especially if it involves a policy with enormous value, would need the carrier to do an elaborate examination. This is to make sure that the insured doesn’t fall in a contract exclusion like death as a result of criminal act or suicide.