The procedure to process a claim starts on the occurrence of any event. It may be a car accident or a house on fire, or a security violation.
- Notify the loss: Firstly, the insured person should notify the loss to the insurance company as soon as possible.
- A report with the Police: In case of burglary or theft, a case should be filed with the nearest police station ad the report should be kept safe as an evidence.
- Collection of evidences: The insured person should collect evidence and take pictures as many as he could before starting any repair work. This helps the surveyor or claim assessor to assess the damage.
- Claim to the third party: If the damage is caused by the third party, then a claim should be sent to the third party for reimbursements as well as it should be notified to the insurance company.
- Repairs and replacement of the property: Before, going ahead with any repairs or replacement of the damaged property, the insurance company should be notified with estimated quotations for the same.
- Assessment of the damages: A surveyor or a claims adjustor is appointed to estimate the damages by doing a survey of the damaged property to estimate the total loss.
- Final preparation of the claim documents: To speed up the overall claim process and for the estimation of the claims accurately, it is recommended that the insured person to prepare following documents:
- Notice of loss sent to the insurance company.
- Report of accident with pictures.
- The cost of the damages/loss with all the relevant documents like invoices, purchase bills of machinery etc.
- A Copy of the police report if any report is filed.
- Claim note sent to other parties if required.
Case on Property and Casualty Insurance Claim
Mr. Ketan Shah, is a business owner, owning a garment outlet. Owing to risk of the loss of stock due to theft, fire, or any other reasons, he bought an insurance for his shop including the stock from an insurance company.
One fine day, the whole city was flooded due to continuous rain and the water entered Ketan’s shop as well. All the stock lying on the lower two shelves was destroyed and even the property was damaged.
Ketan was relieved that he has a property insurance cover and his losses will be compensated. He reported the loss to the insurance company, took the pictures of the loss before clearing the damaged stock, and the claim assessor was appointed to process the claim. He then got a quotation of the cost of repairs that was needed to be done immediately to continue the business and notified them to the insurance company before the start of any repair work.
The claim assessor visited the site to collect all the evidences required to estimate the losses of the Mr. Ketan Shah. In the meantime, Mr. Ketan also collected all the documents relating to claims process such as notice of loss to the insurance company, purchase bills of stock, loss report with pictures, etc. This helped the assessor immensely in his estimation of the loss.
Mr. Ketan’s claim was approved by the insurance company and was compensated for all his losses.
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