What is a claim?

What is a claim? The claim is a formal request made by the policyholder, which he asks for as coverage from his insurance company. An insurance policy that provides coverage to the policyholder against the losses covered under his policy, and for this, he deposits money every month as a premium for years. Be it property damage or physical injuries, Insurance includes liability claims because sometimes the insured is held responsible for the accident or harm caused to others.

What is the purpose of the claim?

The objective of the claim is to get the policyholder financial compensation from his insurance company. If the insured meets with an accident under the policy plan, the loss gets covered through a claim. It can be a car accident, property damage, medical expenses, or anything else.

How many types of claims are there?

See friends. The type of claim depends on what accident has happened and whether it comes under your insurance coverage. 

Generally, there are six types of claims:

How many types of claims are there?

See friends. The type of claim depends on what accident has happened and whether it comes under your insurance coverage. 

Generally, there are six types of claims:

• Health Insurance Claims

Health insurance claims are reimbursement of expenses incurred on treatment of accidents and serious illnesses, hospitalization, surgeries or operations, and medicines.

• Life Insurance Claims

Life insurance claims are for the beneficiaries of the policyholder’s family after the policyholder’s death, and this claim is received only upon death.

• Motor Insurance Claims

Accidents caused by vehicles get covered under motor insurance claims. The purpose of this claim includes claims for the expenses incurred on repairing the automobile, liability insurance for physical injuries, or coverage for medical expenses for damage to the property of others.

• Property Insurance Claims

Property Insurance Claims compensate for the loss of every type of property. For Like fire, theft, loss due to natural disasters, wear and tear of property, etc.

• Liability Insurance Claims

These claims help when you cause damage to another person or his property, and you are held legally responsible for that damage.

• Travel Insurance Claims

This insurance claim helps to compensate for the expenses incurred due to any unexpected incident during travel. Insurance provides coverage for personal accidents, trip cancellations, loss of luggage, and medical expenses.

What is the Process of File Claim?

There is a procedure to file a claim. Whether the claim is for medical expenses, a car accident, or property damage, it is essential to understand the steps to file a claim.

Let us understand it:-

• Firstly, check your insurance policy and review the sum insured, deductibles, and lump sum payout. You must check the formalities required for the type of claim you wish to file. Also, check the time limit for filing the claim with the insurance provider.
• Collect all information related to the accident as evidence. You can submit photos, videos, police reports, medical records, and invoice. Know that the more transparent and relevant your information is, the stronger your claim will be.
• If you have an accident, contact your insurance company or insurance provider Urgently. You must provide them with all the necessary information, including the date, time, and location. After this, wait for instructions from your provider.
• Fill out the claim form carefully and file an online video claim. Take your time filling out the form and describe the accident or damage correctly.
• Attach all the required documents with your claim form. It includes medical reports, police reports, receipts, and invoices.
• If a claims adjuster handles your claim, cooperate with them. Answer the questions asked correctly and submit whatever documents they ask from you.
• Stay in constant touch with your insurance company or provider during the claim process. Keep getting updates from them about the claim.
• After your claim is processed, check the claim settlement. You should see whether the claim settlement is correct and compensate for your loss.

Why are Claims Rejected?

See friends, although the circumstances of every claim are different. Hence, claims get rejected in various ways. 

Let us know some common reasons for claim rejection:

• No coverage on a claim

If you are filing a claim for an accident or incident that doesn’t get covered by your insurance policy, the claim gets rejected. So always read your insurance policy thoroughly before filing a claim and check what incidents or accidents your plan covers.

• Terms and conditions in the policy

Generally, some conditions are prohibited in the insurance policy, and the policyholder should pay special attention to these terms and conditions.

• Hiding or giving false information

While applying for the claim, the policyholder should have correct information about all the items for which the claim is to compensate for the loss.

• Hiding or giving false information

While applying for the claim, the policyholder should have correct information about all the items for which the claim is to compensate for the loss. If false information or it is proven that the items that are claimed were not damaged, your claim will get rejected.

• Failure to pay a premium

If you have failed to pay the premium or your policy has lapsed, the insurance company will reject your claim. Your premium payment keeps your policy active.

• Late reporting to the insurance company

It is always mentioned in the insurance policy that when you have an accident, you should report it to the insurance company as soon as possible. The insurance company has also given a fixed time limit for this. If you report your policy after the stipulated time limit, then in such cases, also the insurance company rejects the claim.

• lack of evidence

You must also have primary evidence to prove the accident and the loss you claim, Such as photos, videos, medical and police reports. If you do not have sufficient evidence, your claim gets rejected.

• fraudulent activities

Always keep in mind that insurance companies investigate claims thoroughly. If they feel that any information is incorrect or fraudulent, they immediately reject the claim.

How to avoid Claim Rejections?

To avoid claim rejection, keep some things in mind:

• Read and check your policy carefully
• Report an accident or incident immediately
• Gather all necessary documents
• Follow the policy terms and conditions
• If the claim gets rejected, but you feel the claim was legitimate, there are two things you can do. 

1. you can appeal against the decision
2. you can get help from people associated with the law.

Can a claim for withdrawal be made?

Yes, claim withdrawal can happen in some circumstances, but it depends on the terms and conditions of the policy.

• When you have made a mistake in filing the claim, or there is a lack of necessary information.
• The increase in your insurance premium must be more than the payout for the accident that occurred.

Are claim payments taxable or not?

Claim payments are generally not taxable because they represent compensation for financial loss. For example, if you receive an auto insurance claim. It will not be counted under the Income Tax Department.