
A formal request which is made by a policyholder to an
insurer for compensation/coverage for a policy event or loss (covered under the policyholder’s
plan) is termed as ‘Insurance Claim’.
Whenever a claim is
raised, the insurer has the complete
right to either validate or deny the claim depending on the approval process.
The insurer issues
the payment to the policyholder or third-party or approved interested party, post the approval
of the claim.
