A claim occurs when there is an event that causes specific loss, guaranteed by the insurance policy up to a certain amount. It also gives rise to the principle of indemnity, according to which insurance companies are obliged to pay, in whole or in part, the insured or their beneficiaries, the capital sum guaranteed in the contract.
However, a claim should not always be understood from a negative perspective, because there are positive claims, such as, for example, reaching retirement age and acquiring the right to receive an annuity.
In order to better understand the concepts of losses and claims, some examples are given below:
- A fire resulting in the total or partial destruction of an insured building.
- A traffic accident resulting in personal injury or material damage.
- The death or disability of an insured in a life or accident policy.
- An illness or operation on the insured.
- Shipwreck in which a vessel or the goods carried are lost.
- Hail that destroys an insured agricultural plantation.
At times, some people feel frustrated when they pay the premium, have no claims during the period of coverage and, as a result, receive nothing “material” or “financial” in return. However, that is the essence of insurance: the promise of indemnity in the event of an accidental or fortuitous event covered by the guarantees of the policy.
If nothing bad happens, that’s a good sign! The protection exists from the moment the insurance is taken out, even if we are not conscious of this. The moment any event foreseen in the policy occurs, the insurance company will guarantee the repair or provide compensation for the damage.