Loss settlement refers to the process by which a company determines the compensation it will pay to the insured after a claim. It involves assessing the extent of the loss, reviewing the terms and conditions of the insurance, and determining the payable amount.

When an event protected by your policy occurs, such as a car accident or a fire at your home, you need to file a claim. The company will assess the damages and use various methods to determine the loss valuation. This may include inspecting the harms, reviewing repair bills and estimates, and considering other relevant factors like depreciation.

Once the evaluation is complete, the insurer will offer a settlement agreement, which is the amount of money they are willing to pay to cover your losses. If you agree with the offer, payment will be made, and the claim will be closed. If you don’t agree, you can negotiate with the company or seek other ways to resolve the disagreement, like mediation or arbitration.