To a great extent claims management is technical and partly legal in nature. The article aims at achieving a certain level of standardization and uniformity in claims processing under Standard Fire and Special Perils (SFSP) policies.
In general insurance, there are a large variety of policies and claims. Therefore, it is not very easy to have a uniform standard for all claims. It differs from department to department. However, an attempt has been made here to provide an indication of the areas of possible standardization in the major departments of the industry.
Standardization of claims can be understood in two different contexts. Firstly, the claim settling procedure, right from the registration of the claim till the payment/reputation of the claim and initiation of recovery proceedings if any, should be uniform throughout the company.
The basic principles are expressed in the policy through its terms, conditions, endorsements and warranties. In some cases, they may not be so expressly stated but are implied. In addition to this, there are several statutory provisions which affect claim settlements in Motor, Marine, WC and other branches.So to a great extent claims management is technical and partly legal in nature. Technical and technological factors are relevant to understand, analyze, assess and evaluate the risk that is covered under the policy. When a loss occurs, while determining the cause of the loss this technical aspect is taken into consideration along with its legal perspective.
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