An insurance claim form is defined by Collins Dictionary and Investopedia as an application form that serves as a formal request to an insurance company claiming compensation according to the terms of a policy. Once it's received, the insurance company reviews the form and pays out to the requesting party.
Insurance claims can apply to death benefits and health exams, reports Investopedia. They are usually filed by a third party on the recipient's behalf.
Insurance is mandatory for automobile owners and drivers, reports Arnold & Itkin LLP. Each state has a minimum level of insurance required, but some drivers may wish to protect themselves from loss of value or various injuries. Health insurance policy is usually considered necessary due to the possibility of facing large medical fees after falling seriously ill.
Although the standard policy may be that once an insurance company approves a claim, the payout is sent without issue, various complications may arise. Arnold & Itkin LLP state that if an insurance policy holder fails to treat a client in good faith, they may be liable for another insurance claim that seeks damages beyond the initial payout. Furthermore, there may be disputes over the amount of coverage provided and payment owed, further complicated if the recipient has failed to make all payments on time.