Everything You Need to Know About Insurance Claims
The concept of insurance is to provide financial protection from unforeseen events that might cause loss or damage. The premium, which is the agreed price that the insured has to pay is accumulated in a pool from which the insurer is entitled to use for obtaining payment for claims.
Policyholders may choose what type of option they prefer when paying for insurance premiums depending on their insurance provider. Some of the best insurance providers allow their customers to pay their insurance premiums in installments, either monthly or semi-annually. Others might require full upfront payment before coverage starts.
What is an Insurance Claim?
The policy that the insured purchased is the guarantee of financial assistance should unforeseen events happen that resulted in a loss, damages, or injuries, provided that it is under the policy’s terms and conditions. The formal request for financial protection made after a certain incident is called an insurance claim.
Remember that an insured can only file a claim for something that is caused by one of the perils cited in the insurance policy. And an insurance company will only compensate for covered losses or damages after the policyholder had paid his share of the costs.
After an insurance claim is filed, the insurance provider will then validate the claim to ensure that the claim is truthful and an incident occurred. Once the policy is approved, the insured or any associated third parties can receive the promised payment also called the benefit or payout.
How to File a Claim?
Should the insured suffer from an accident, disaster, or loss that is covered by their insurance policy, he or she is entitled to make an insurance claim from their insurer. To file one, the policyholder must go through a few steps in the claims process.
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Contact the insurance provider
A claim is best acknowledged if it is timely reported, especially if the unfortunate incident is severe. Immediately contacting the insurer is significant to getting the claim process started. Insurance claims can either be requested through a phone call without needing to fill in a form. But in most cases, the insured is required to fill out one, either on the company’s website or download it.
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Provide evidence and keep a written record
Providing information and proof is critical to proving the validity of the claim. It might include how the incident happened, the location it occurred, who was involved, and even witnesses who can attest for questioning.
Policyholders can also prepare a written record of the exact happenings that transpired right after the incident occurred to prevent missing out on small details that might help in approving the claim immediately.
The types of documents that the insurer might request as evidence of loss or damages or values of the insured items might include but are not limited to:
- Original receipts
- Police reports
- Valuation reports
- Medical certificates
- Product make, model, and serial numbers
- Photographs and videos of property or items and the event
How Can an Insurance Claim be Paid?
Insurance companies will promptly assess the claim made by an insured to pay out all claims covered under the policyholder’s insurance plan. After evaluation of the claim, an insurance company might accept or deny a claim based on information provided by the insured.
Under the Republic Act No. 10607 known as the Insurance Code of the Philippines, insurance companies must be paid within 30 days after proof of loss is received by the insurer and ascertainment is made by the agreement between the insurer and the policyholder.
If a claim is approved by the insurer, the policyholder can choose between actual cash value or replacement costs. An example would be if an individual has home insurance in the Philippines as the insured might be given a choice between receiving a replacement cost settlement or a cash settlement.
But various insurance providers do not have the same payment system. It is best to consult with an insurance provider before purchasing an insurance policy or find an insurance provider that can cater to your needs and budget by visiting a comparison website insurance Philippines
Can Insurance Claims be Denied?
Unfortunately, insurance companies have the right to deny claims. The common justifications that insurance providers use to deny a claim depend on the type of coverage, policy limits, and fraudulent acts committed. Untimely payment to no payment of premiums might also cause a denial of a claim.
Read More: Do’s and Don’ts of Car Insurance Claims
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