Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
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Claim : a claim is a notification to an insurance company for compensation for loss on the happening of an insured event, under the terms of the policy.
Write-off is also used in vehicle insurance to describe a vehicle, which is cheaper to replace than to repair, sometimes colloquially referred to as being 'totalled' (a total loss).
Leakage is the term for any additional costs incurred by the insurer beyond those necessary to fulfil its claim obligations under the insurance contract, excluding fraud. Thus, it covers any inefficiencies or errors in the handling or settling of the claim, failures of service or replacement goods suppliers to act efficiently or according to their service contract, or any other unnecessary cost.
Claims handling is the most important service an insurer can give, as regards customer service.
At the same time, poor claims handling can also hit the company's bottom line and shareholder profits.
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