An insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Hence, an insurance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured event such as death, terminal illness, critical illness, accident of vehicle, fire, or any other event or on the maturity of the policy.
An insurance policy compensates you against the financial impact that can arise following loss, damage or destruction of your property (such as home or vehicle) or your health or life. A fundamental principle of insurance is to put you in the same financial position after a loss or accident that you enjoyed before the loss. However this is easier said than done as getting an insurance claim can be a daunting task for most, right from individuals to corporate houses and you may need specialized assistance for speedy and proper settlement of your claims.
Claims are settled in accordance with the conditions detailed in the policy. When you report a claim, the Insurance Company needs to check that the policy covers the loss. Once the appropriate documents are produced to verify a claim called the process of claim settlement.
Insurance companies have an obligation to settle claims promptly.
You will need to fill a claim form and submit all relevant documents such as original death certificate and policy bond to your insurer to support your claim.
In case a claim arises you should do the following:
Contact the respective insurance company branch office.
Contact your insurance advisor
Call the respective Customer Helpline
However under various clauses your insurance claim can be denied and it is advisable to get your claim processed immediately or consult a insurance claim advisor or an insurance claim consultant to protect your interests.