For policyholders, it is not enough that you know your coverage and the rate you are paying for your premium. It is also important that you know by heart how to file an insurance claim.
An insurance claim is application for all the rights and benefits of a policyholder from his insurance provider. Before money can be given or disbursed to an insurance owner for hospitalization or car repair, such claim should be done first. Be reminded that not all claims are paid out. An assessment completed by the insurance company will determine whether a pay out to the customer will be made or not.
Individuals who make an insurance claim must make sure that regular premium payments are made. Premium payments are used by the company to pay off claims of other policyholders, or to establish their assets to be able to pay off all their customers. Generally, an insurance claim is filed through the representative of the insurance company. The representative then takes the responsibility of investigating the details of the claim. It is also part of the agent’s responsibility to have some negotiations in terms of the payment with the principal insurers. But claiming insurance is not always the best option of some policyholders. When the damages are minor or when the damaging party pays for the damage out of his pocket, claims need not be filed.
After the claim has been filed, this does not mean the money will automatically be sent out. Investigators or appraisers will conduct investigations to make sure the estimate being claimed is reasonable, or to insure no fraudulent activity is committed. Generally, insurers accept the result of the appraiser’s investigation.
Insurance companies do not recognize all claims, such as when the policyholder has not been paying for the premium. This would automatically mean inactivity of the account. Another reason for denied claims is when there is a failure of coverage under certain conditions. Most often than not, insurance companies withhold the payments when the damage inflicted was due to carelessness or what insurer’s call an Act of God.
Before even filing for a claim, make sure that you have understood your company’s policy regarding this matter so you do not waste your time or your insurer’s.
