What is the main purpose of filing an insurance claim?

Filing an insurance claim primarily serves the purpose of seeking compensation for a covered loss. When an insured individual experiences a loss, such as damage to property or a car accident, they submit a claim as a formal request to their insurance company to provide financial reimbursement for those losses. This process is essential as it activates the insurer's obligation to assess the loss and determine if it falls under the terms outlined in the policy.

The reason for this focus is rooted in the principle of indemnity in insurance, which aims to restore the insured party to their pre-loss financial condition, not to profit from the loss. By filing a claim, the policyholder is leveraging the protection and financial security that their insurance policy is designed to provide, thereby ensuring that they receive the support they need to recover from such incidents.