Question

The claims department is an essential part of MGMT Insurance Ltd. It is important that the claims department is provided with relevant and current information to properly assess a claim and settle the claim in a reasonable time. Deduction allocation errors prevent the claims department from settling a claim, as the customer’s file and company database would reflect an unpaid balance on the insured’s premium payment. This slows the claim settlement process and increases the chance of litigation against the company, which is costly in the long run. This error also impacts the company’s reputation and may result in mass policy cancellation and reduced new business. The deduction could have been too small because a participating business may have unstated the premium payment amount submitted online.

Answer 1

The subject of this question is Business because it discusses the claims department of an insurance company and the impact of deduction allocation errors on the settlement of claims.

Step-by-step explanation:

The subject of this question is Business because it discusses the claims department of an insurance company and the impact of deduction allocation errors on the settlement of claims.