What Does Claim Mean?
A claim is a formal request to an insurance company for payment based on the terms specified in the insurance policy. The insurance company reviews its validity and pays upon approval. Alternatively, the insurance company could decline the claim or pay a lesser amount, depending on the circumstances of the claim.
Insuranceopedia Explains Claim
An insurance policy offers coverage from certain risks. In case the event insured against occurs, the policyholder or a third party (e.g., health insurance) notifies the insurance company and provides any relevant documentation, if applicable. Insurance claims comprise a variety of benefits, such as death benefits in life insurance; medical expenses in health insurance and restoration expenses and replacements of damaged items or cash value of damaged items in property insurance.