Have you ever wondered how long to process insurance claim? Wonder no more because we’re going to explain not only that but also the process itself in five easy steps. We have broken it down into simple explanations for those who want simple answers.
We know the stress of waiting for help to come. Insurance companies serve as our peace of mind when in times of financial need. But money doesn’t just grow on trees or rain from the sky. It’s good to know how long it would take to wait for an insurance claim to be processed.
My friends before we dig deeper into this topic, let us know first what is insurance claim is. It is a formal request from the policyholder to the insurance company to compensate for a loss that their insurance has already covered. Once the insurance company approves the claim, they will issue the payment to the insurer or any other approved party on behalf of the insured. In other people being involved in the incident, only the insured person gets to claim the insurance payment. Keep on reading this article!
What Are The Different Types Of Insurance Claims?
Of course, just like there are different modes of payment, there would be different types of claims. Therefore, it is beneficial to know before even applying for insurance. So now, let us talk about the different types of insurance claims.
Type #1. Reimbursement insurance claim settlement
Before we get into details, let us talk about what reimbursement means for a more precise understanding. Reimbursement is the act of repaying someone who has lost or spent a lot of money. In this case, it would be a loss of money. However, reimbursement could also pertain to the sum needed to cover the money lost or spent.
The payment process in this type of settlement is done at a later stage. What will happen is that the insurer will have to pay the amount of money in the meantime. They will then get reimbursed from their insurance company at a later time.
Type #2. Cashless insurance claim settlement
This type of insurance claim speaks for itself. But how does it work? It only works when, for instance, the insurer will need a health insurance claim. The majority of the claim will have to be already settled between the hospital and the health insurance company. You won’t need to pay the bills like you would have to with reimbursement insurance claims.
Cashless insurance is ideal for those who tend to not have any available cash money in case of emergencies. This gives security for any sudden health scare situation that can be covered up by the insurance company involved.
Regarding hospital insurance, claim settlement arrangements will be much easier to validate when these hospitals are so-called network hospitals since they already have a set process.
How Long Should I Wait?
So how long to process insurance claim? It depends on the type of insurance, loss, and what even had occurred. It may also depend on the country or state you live in. For instance, a car insurance claim can take up to 2-3 years. On the other hand, the average period to receive the compensation or reimbursement money for a settlement of a personal injury claim to be accepted is within 14-28 days from the date of settlement.
It is advisable to check with your insurance company about the duration of insurance claims. An insurance claim isn’t only processed by one person but a whole team. Let’s walk you through the steps of the insurance claims process.
Step #1. Connect with your broker
When it comes to your policy, you should always contact your broker first. They should be able to assess the situation and help you on how to proceed with it. You must give them a detailed explanation, include photos and videos if necessary.
Step #2. Claim investigation
After reporting the claim, we will send an adjuster to investigate the loss and damages that your policy covers. The adjuster may interview witnesses and other parties. They will need information from any liable parties. If I were you, know what to expect when you’re expecting a claim investigation.
Step #3. Policy review
The adjuster will review your policy after investigating. It is a strictly detailed step that determines what isn’t covered. The adjuster will then inform you of any that may not apply to your situation. For you to understand better, know how to review an insurance policy. You can also read what does pended means on an insurance claim.
Step #4. Damage evaluation
Many professionals will be involved to evaluate the damage done. Such professionals will be engineers, contractors, lawyers, or appraisers who may be an expert in the field of such. Your adjuster will then suggest you a list of vendors for the repairs. However, you will not be obligated to hire them.
Step #5. Payment arrangement
After the repairs have been made, your adjuster will contact you and settle your claims and payment. As mentioned above, the time of payment to arrive will depend on the claim. If you have noticed from the examples given, the severity of the claim affects the time of payment.
There is no fixed answer to know how long to process insurance claim. You will have to take that up with your insurance company, broker, and adjuster. So do your research before deciding on insurance as well as before filing a claim. For more insurance articles, read on what is a MEC life insurance policy. Thank you for reading!