The Meaning of Claims of Insurance

In case of unexpected damages such as fire, car accidents, burglary, natural disasters as well as injury and deaths, many people often talk about claims. That is certainly because claims are part of materialized utility of insurance that people buy to get compensation when threats of loss such as those mentioned above occur. Claims are the actual ‘product’ that is paid to compensate the ‘buyer’ for the loss they experienced that is agreed by the insurer.
In practice, claims may be filed directly by the insurers or by insurance agents of brokers. The insurer may ask his or her claims to be filed on proprietary forms. However they may also accept claims on the form of standard industry. The claims department of an insurance company usually employs many claim adjusters that are supported by the records management staff and the data entry clerks. The classification of incoming claims will be based on severity category. Also the incoming insurance claims are assigned to adjusters that with different knowledge and experience will have various settlement authorities. To every claim they receive, he adjusters have duty to undertake a checking and investigation. The work usually is in close corporation with the insured to determine if suitable coverage can be applied under the contract of insurance’s terms.