Claims management is essential for the success of both large and small companies working within the construction industry. It is crucial to understand the concept of claims and insurance to develop strategies for avoidable and unavoidable risks like unscheduled delays, natural calamities, poor planning, and machinery breakdowns, etc., while keeping customers satisfied.
Before understanding the concept of Claims Management, let’s first understand what exactly the term ‘Claim’ means in the insurance sector. A Claim can be defined as a request or a demand by either party for compensation against damages caused by the failure of the other party. The claims can be made against a variety of issues like fluctuations in the contract work, delay in site handover, defect in designs, unforeseen conditions, low productivity, and mishandling of workers among other reasons.
After filing the claim by either party, it becomes necessary for the company to seek help from the Claims Management expert. During this process, claim managers assist with handling the claim and determine which party is responsible for the wrongdoing. All these activities are done keeping in mind the terms of the contract and the compensation amount. If the terms of the product or the construction are clear, the managers can ask for paying a financial sum to the claiming party; otherwise, they follow different mediation tactics to enable a mutual resolution.
Thus, Claim Management is a cumulative term for the myriad of advices on claims made for compensation, reparation, restitution, or any other assistance in regards to the financial loss or breach of contractual commitments. It involves investigations, litigation support, and settlements as well.
STEPS INVOLVED IN CLAIM MANAGEMENT
Contract Administration
A Claim Management firm provides the solution and assistance to its client in three simple steps that have been discussed below. However, these steps are further divided into a chain-like concept, but for your understanding, we will here discuss the broad concept only.
- Advisory: The first core service of claim management is Advisory. Claim Managers work together with both the parties and understand why the claim has been filed. After a proper understanding of the case, they advise both parties to settle down the claim, if possible. If not, then they move to the investigation part.
- Investigation: In this step, the manager investigates the claim to provide impartial judgment. They collect information from credible sources about the circumstances or merits. In some cases, the investigator checks the contract and find out why and by which party the contractual terms were breached.
- Registration: When the company hires a firm for managing the insurance claims, it reduces the operational burden associated with its registration. Claim Managers solely handle the filing process. They render services for providing clear information to the policyholders, ensure all the essential documents are processed and filed and expedite the claim assessment process.
Thus, from advisory to recovery, Claim Management is a significant pain point for insurers and customers alike. Our technology and network here at Contract Square aim to make insurance and claims a transparent and effortless experience. Our team of experts offers you a range of services to mitigate risk and file any claims in case of losses arising against such insured risks, including necessary documentation.
We professionally manage the entire risk evaluation & insurance process to ensure all potential risks are adequately covered and support in a timely & accurate filing of claims. Contact us for more information on the best Claims Management services in India.
