Insurance claims are the moment of truth for the insured. A claim can be demanded in an insurance contract when the insured suffers an event that the policy covers. The claim processing or claim settlement process will start with the insured or their nominees filing the claim with the insurer.

Every insurance claim is guided and limited by the terms and conditions of the policy covering the contingency. Health insurance claim may be cashless or a Reimbursement.

What is an Insurance Claim?

An insurance claim is a formal request to the insurance company, in writing, for the amount assured on the occurrence of an event as specified in the insurance policy. An insurance claim is a compensation against losses covered under your insurance policy. As an insured or as a nominee you are entitled to claim because of the premiums paid to the insurer in line with the terms and conditions of the policy document.

Insurance is a financial agreement in which you pay a fixed premium and in return, the insurer provides financial cover for losses incurred.The objective of the “claim process” is to inform the insurance company that the event for which the insurance cover was offered has occurred and that the assured amount should be disbursed.

How does an Insurance Claim Work?

An insurance claim helps you avail the support of the insurer against the insurance policy you had purchased. For example, if you have bought a health insurance policy, you can file a claim with the insurer against the policy to:

i. Reimburse the hospitalisation expenses
ii. Provide cashless service at the hospital of your admission

Similarly, life insurance claims can help your family avail the financial support you planned with the insurance policy. They can simply file a claim with the insurer with all the relevant documents and receive the policy benefit.