Unreported Claim
What Does Unreported Claim Mean?
Unreported claims refer to insurance claims for losses that have occurred but have not yet been filed or reported to the insurance company. This situation is common in the liability, health, and life insurance industries. To address these claims when they are eventually filed, insurance companies establish a reserve known as Incurred But Not Reported (IBNR) funds.
Insuranceopedia Explains Unreported Claim
In insurance, there are situations where losses or damages, such as death, injury, or disability, have occurred, but no reports or claims have been filed with the insurance company. To prepare for these potential claims, insurance companies use estimates to set aside reserve funds, known as Incurred But Not Reported (IBNR) funds. These reserves ensure that funds are available to meet future claims when they are eventually submitted.
In life insurance, for example, beneficiaries sometimes don’t file a claim for months or even years after a death because they weren’t aware a policy existed. If you’re in that situation, it helps to understand the steps involved in collecting life insurance as a beneficiary. Unreported claims are also common in general liability insurance, where injuries or property damage from a business’s operations may not surface until well after the incident.
