An insurance claim refers to the process of a person applying to get the benefits provided by an insurance company that is stipulated in the insurance policy the person pays for. An insurance claim must be filed before any money is given to the hospital, car repair shop or other contracted service that is stipulated in the insurance policy. It should be noted that an insurance claim may or may not be approved by an insurance company. The insurance company will have to assess the situation first and study the claim before it makes any decisions.
Before an insurance claim is even discussed, an individual who takes out any kind of insurance policy must first maintain the policy through regular payments of the insurance premium to the insurance company. Usually, these payments are used for settling another person’s insurance claim or used to further strengthen the assets of the insurance company. But when a damage is too large, the insurance policy holder can file an insurance claim so he can receive money from the insurers.
Insurance claims are usually submitted to a local representative of the person’s insurance company. The agent or local representative now assumes the responsibility of investigating the claim by looking at the details. The representative is also responsible for negotiating the payments to the policy holder from the insurance company.
The insurance company may also decide to send an investigator to further investigate the insurance claim. The investigator is also called an adjustor or appraiser. This is done to prevent fraud.