Final answer:
Many insurance policies require that claims be reported within a certain time period to ensure proper investigation and prevent fraudulent claims. Failure to report a claim within the specified time may result in claim denial.
Step-by-step explanation:
Many insurance policies require that claims be reported within a certain time period. This is to ensure that the insurance company can properly investigate the claim and determine its validity. By setting a time limit, the insurance company can also prevent fraudulent claims from being made long after the incident occurred.
For example, let's say you have car insurance and your car gets damaged in an accident. Your insurance policy might require you to report the claim within 48 hours of the accident. This gives the insurance company enough time to send an adjuster to assess the damage and process the claim.