What is a claim in the context of insurance?

In the context of insurance, a claim refers to a formal request for payment sent to an insurance company by the policyholder. This occurs when a policyholder experiences a loss or event that is covered by their insurance policy, such as damage to property, a medical situation, or other insured incidents. The claim initiates the process through which the insurance company assesses the situation and determines the validity of the request. If approved, the insurance company will provide the financial compensation as outlined in the policy.

Understanding what a claim is helps individuals recognize their rights and responsibilities in the event of a covered incident, as well as the process of seeking assistance from their insurance provider.