Posted: Tue Jul 11, 2006 5:20 am Post subject: Claims
Can any one pl let me know that,
Is there any difference between "Loss & Loss Adjustment Expense" and "Claim & Claim Adjustment Expense" _________________ Register Now to have your Insurance queries solved.
Loss adjustment can be explained as the expenses involved in settling a loss. These are all the costs as well as the expenses with reference to a specific claim that a Company incurs in its investigation, appraisal, adjustment, settlement, litigation, defense or appeal of that specific claim. But it excludes the unallocated loss adjustment expense in it.
Claim & Claim Adjustment Expense constitutes the payments done in a business year towards all claims inclusive of any adjustment towards the provisional outstanding claims and associated expenses.
A claim may be defined as an amount sought after by the insured or his beneficiary in order to pay for the benefits set by the primary contract. On the other hand the claim adjustment expense is the expense towards feeding or adjusting a claim e.g. investigation costs and associated legal expenses. This is not inclusive of the cost of the claim.
A loss may be termed as (1) an amount that reduces the insured's property value as a result of an unforeseen peril, (2) an amount mentioned in the insured's claim or (3) an amount paid in lieu of the insured's insurance contract. (3). Loss Adjustment expenses could be calculated as the cost of adjusting losses after deducting the amount of the very loss.
