What are the basic objectives of claims management?

Claims management is the basic goal of the insurance industry. It means to settle the losses of the insurer and the differences between the insurer and the insured. Claims management is more than just settling the losses with money. Insurance companies have claim settlement representatives to carry out this task. An insurance company should pay for the claim reasonably. Rejection of undeserved claims also falls under claims settlement. Claim management is the function of an insurance adjuster. There are various such adjusters working in the insurance industry.
Basic objective of claims settlement
The basic objective of claims settlement includes:
  • Confirmation of a covered loss - The insurer should make sure that the claim to be covered had actually occurred or not. The insurer should check, if the applicant of a life or property insurance is eligible to claim it. 
  • Reasonable and timely payment of claims - The claims settlement should be fair, and without any delay. If the applicant’s reasonable claim is rejected, it may defy the main objective of insurance. It may also affect the insurer’s reputation. 
  • Personal support to the insured - Apart from the legal responsibilities as per the contract, the insurer should help the insured personally in some cases. For example, an insurer should help the insured to find a temporary house, if there is any natural hazard.
What are the basic objectives of claims management? What are the basic objectives of claims management? Reviewed by enakta13 on December 14, 2019 Rating: 5

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