Definition and Functions of Claim Denial Letter – Everyone certainly has the risk of getting sick or losing something valuable in the future. One of the things that can be done to minimize the risk above is through insurance ownership. Insurance claims can help users be protected from various unwanted risks such as loss of property, fire, to accidents.
Well, so that you understand more about the Denial Letter of insurance to the claim process, we have summarized the following explanation.
What is an Insurance Claim?
An insurance claim is a claim from the insured party due to a contract agreement with the insurance party to guarantee the payment of compensation as long as the premium payment has been made by the insured party. Simply put, a claim is a formal application submitted to an insurance company to make payments to the beneficiary.
For example, when someone dies and that person has life insurance, the heirs can file a claim. If all administrative requirements are met, the insurer will carry out its obligations to pay dependents to their heirs according to the agreement listed. Insurance claims do not only apply to life insurance, but also other insurances such as health insurance, education, and so on.
Purpose and Function of Insurance Claim
The purpose of this insurance claim is the most important and important. Transfer of risk means that the insured party is aware of the threat of danger in the short or long term to his life or property. If the threat becomes reality, you will suffer losses and will feel the burden of risk that can occur at any time.
What is the Purpose and Function of Insurance Claims?
This is the function of insurance for you and your family so you don’t have to worry about carrying the burden of that risk. Insurance plays a role in taking over your risk by paying a premium. As long as you pay the premium, the risk will shift to the insurer.
Payment of compensation
The next function of insurance claims is to pay compensation. If you experience an event that causes a loss, for example, a fire in your house, the insurance will compensate for the loss according to the premium you choose.
Payment of compensation
Insurance is also useful for paying compensation for customers, for example in life insurance. Life insurance is held based on an agreement between the customer and the insurer. In addition, the law also regulates insurance that has a mandatory nature, such as BPJS health. This social insurance aims to protect the public from health threats that can result in death and others.
How to Claim Insurance
As people who use insurance services, of course, we have the right to make insurance claims according to the type of insurance used. Every insurance generally has a claimed method that is almost the same according to the type of insurance you use. That’s a discussion about the purpose and function of an insurance Denial Letter.