Arrange the following steps in a logical sequence of the claim settlement procedure in the Insurance:
(A) Scrutinisation
(B) Investigation of an assessment
(C) Claim form
(D) Notice of loss
(E) Settlement and Arbitration
Choose the correct answer from the options given below:

Correct option is D

The claim settlement procedure in insurance follows a structured sequence to ensure that the claim is valid, properly assessed, and settled fairly. The correct sequence of steps in claim settlement is:

1. Notice of Loss (D):

   • The first step in the claim settlement process is that the insured person must notify the insurance company about the loss or damage as soon as possible.
   • This notice initiates the claim process and helps the insurer prepare for the next steps.

2. Claim Form (C):

   • After notifying the insurer, the insured person needs to fill out and submit the claim form with essential details like policy number, type of loss, date, and location.
   • This serves as an official request to process the claim.

3. Scrutinization (A):

   • Once the claim form is submitted, the insurance company scrutinizes the provided documents to check whether all necessary information is available and correct.
   • This step helps prevent fraudulent claims and ensures compliance with policy terms.

4. Investigation & Assessment (B):

   • The insurer conducts a thorough investigation and assessment of the claim, which may involve loss assessment reports, verification of damages, and professional inspection.
   • This step ensures that the claim amount is justified and that no fraudulent activities are involved.

5. Settlement & Arbitration (E):

   • After investigation, the insurer processes the settlement based on the claim assessment.
   • If any disputes arise, the matter may go into arbitration before the final settlement is issued.

Thus, the correct sequence is:
D (Notice of Loss) → C (Claim Form) → A (Scrutinization) → B (Investigation & Assessment) → E (Settlement & Arbitration).

Information Booster:

1. Types of Insurance Claims:

   • Life Insurance Claims(Death claims, Maturity claims)
   • General Insurance Claims(Health, Vehicle, Property, Fire, Marine, etc.)

2. Key Principles of Claim Settlement:

   • Utmost Good Faith– The insured must provide true information.
   • Indemnity Principle– The claim amount should compensate for actual loss, not profit.
   • Subrogation– The insurer can take legal action against third parties responsible for the loss.
   • Contribution– If multiple insurers are involved, they share liability.

3. Common Reasons for Claim Rejection:

   • Incorrect or false information in the claim form.
   • Delay in claim intimation.
   • Non-disclosure of material facts.
   • Policy lapse due to non-payment of premium

4. Importance of Arbitration in Claim Settlement:

   • Arbitration is a dispute resolution process where a neutral third party settles disagreements between the insurer and the insured.
   • This ensures fair and unbiased decision-making in claim-related conflicts.