What happens to the policy coverage after a claim is filed?

[Dilip Shardul]

What happens to the policy coverage after a claim is filed?

[Shivani Ingle]

After a claim is filed and settled, the policy coverage is reduced by the amount that has been paid out on settlement. For Example: In January you start a policy with a coverage of Rs 5 Lakh for the year. In April, you make a claim of Rs 2 lakh. The coverage available to you for the May to December will be the balance of Rs.3 lakh.

[N.Kumari · Accepted solution]

If there is any claim settled in the policy then sum insured will decrease, and with balance sum insured policy will be active till expiry.

Incase customer wants to claim again, they can use the balance sum insured. If total sum insured is exhausted, then policy will be active. However, no claim can be made as there is zero sum insured.