Claim

Strictly speaking, claims are the exercising of the rights of insureds to be indemnified by their insurance company, It is frequently used, however, to indicate the amount of claim they are making. In practice, it is any notification of a possible loss under an insurance policy whether any payment is likely to follow or not. For every claim that is reported, the insurance company must set aside in a reserve a sum equal to the figure which it is anticipated the claim will cost. This monetary figure or combinations of them are often referred to as "claims," e.g. "that is a $50,000.00 claim" or "We have $2,000,000.00 in automobile claims."