An insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event. If approved, the insurance company will issue payment to the insured or an approved interested party on behalf of the insured. Some benefits of electronic claims payments include receiving payment within hours, choosing direct deposit options, and minimizing the risk of theft compared to mailed checks. Different types of insurance like marine, fire, and property-casualty insurance may require different supporting documents for claims.

1. E- PAYMENT OF INSURANCE
CLAIMS
BY:
M.GOVARTHANI
I B.COM( R)

2. What is an insurance claims?
An insurance claims is a formal request by a policy holder to an
Insurance company for coverage or compensation for a covered loss or policy event.
The insurance company validates the claims (or denies the claim) .If it is approved ,
The insurance company will issue payment to the insured or an approved interested
Party on behalf of the insured.
Insurance claims cover everything from death benefits on life insurance
Policies to routine and comprehensive medical exams. In some cases, a third- party is
Able to file claims on behalf of the insured person . However , in the majority of cases,
Only the person(s) listed on the policy is entitle to claim payments

3. KEY TAKEAWAYS:
 An insurance claims is a formal request by a policyholder to an
insurance company for coverage or compensation for a covered
loss or policy event.
 The insurance company validates the claim and, once approved
issues payment to the insured or an approved interested party
on the behalf of the insured.
 For property –casualty insurance, such as for your car or home,
filing a claim can cause rate hikes to your future premiums . .

4. Benefits of electronic claims payment :
Choose the right claims payment option for your needs and get back to
Doing what matters most to you . When you choose an electronic claim
Payment, you can:
 Receive your claim payment within hours.
 pick the right direct deposit option for your needs.
 Navigate the payment status through a quick, touch less
experience.
 Minimize the risk of theft that could occur with mailed checks.

5. Claims documents:
Claims under marine policies have to be supported by certain
Documents which vary according to the type of loss as also the
Circumstances of the claim and mode of carriage.
The documents required for particular average claims are as under:
 Original policy – (Certificate of insurance)
 Bill of lading – (evidence that the goods were actually shipped)
 Invoice – (evidence for the terms of sales)
 Survey report –(shows the cause and extent of loss)
 Debit note – (claim bill)
 Copy of protest – (protest on arrival at destination before a notary
public)
 Letter of subrogation – legal document which transfers the right of
claimant against third party to the insurer.
( MARINE INSURANCE)

6. PAYMENT OF CLAIMS : (FIRE INSURANCE)
In case of an outbreak of fire , the first care that the insured
Must take is to give notice to the insurance company . The policy
Generally provide for notice within a specified time of the
Occurrence which clause should be strictly complied with. The
Claim to be made out should be for the exact value of an good
Damaged, or destroyed at the date of the fire. In case of goods
Partly damaged or destroyed, details as to their value in good
Condition and in damaged condition ought to be made out and
Furnished to the insurance company. In case of damaged building
The basis of the claim should be the cost of repairs of the damage
With due allowance for the greater value of the new premises over
The old. This is, of course, applicable where the policy covers the
Full value of the property, but in fire insurance the peculiarity is,
Unlike marine insurance, that the insurance company cannot ,
Where the property is partially insured , claim to pay only a
Proportional loss, i.e., loss in proportion in which the amount
Insured stands to the full value of the property.