The insured party has to make a claim against the insurance company for the loss according to the terms and conditions agreed upon in the insurance policy in case of loss occurs.
The insured has to take a detailed procedure for the settlement of the claim, which consists of the following steps.
The insured has to take a detailed procedure for the settlement of the claim, which consists of the following steps.
1. Giving notice
If a loss occurs, the insured must gather the detailed information about the loss and immediately serve a notice to the insurance company about the loss occurred. The insured must give a written notice giving details of damage of the subject-matters.
2. Making a claim
Within a stated period after the loss has occurred, the insured must submit the claim in writing to the insurance company. The claim must mention the details of damage, the value of the damaged subject-matters at the time when loss occurred, and the particular of other insurance, if there any. The value of damaged property or subject-matter mentioned in the claim must not include any profit.
3. Providing evidence
The claim for the loss must be supported by adequate evidence of the loss and of the value of loss. Therefore, the insured must gather sufficient evidence and provide it to the insurance company. The insured must always be ready to produce such evidence as and when required.
4. Assessing claim
Upon the receipt of claim and supporting evidence from the insured, the insurance company attempts to assess the true nature of damage, volume and value of damage based on the supporting evidence. Such an assessment is done by the surveyor and the evaluator appointed by the insurance company.
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5. Settling the claim
After the scrutiny of the claim, supporting evidence and assessment of report of the surveyor, the insurance company decides the amount of compensation for the actual loss. The amount of compensation may be the same as per the claim made or less than that depending on the true assessment of the value of loss. Then, the insurance company sends a letter to the insured for the settlement of claim. The claim is settled by giving payment to the insured.
