A letter to insurance company for claim settlement is a document that represents a factual summary of your compensation claim, including the cause and value of your loss, and the settlement you are seeking. It is usually sent to an insurance company, which can be yours or that of the liable party, to report an accident or event for which you are insured.
If you have insurance for your vehicle, property, or health, and something happens, you can file a claim for settlement with your insurance company. This letter is focal the point of all the negotiations that may follow the insurance claim process.
Elements of a Claim Settlement Letter
Insurance companies, especially large ones, deal with hundreds of claims every day. If your claim settlement letter provides insufficient information, your claim could be ignored. An effective letter should contain the following elements:
- Statements of fact – These are detailed descriptions of the circumstances leading to, during, and after the accident.
- Injuries – This is where you describe your injuries or losses.
- Remedies – Here, you mention any steps you may have taken to remedy the situation, e.g. seek medical treatment.
- Liability – Prove that you are not responsible for the accident
- Damages – List all your losses and expenses, assigning them a dollar amount
Structuring Your Claim Letter
The typical Letter to Insurance Company for Claim Settlement can be broken down into three parts, that constitute of the following information:
The Heading
- Your name, address, and contact information
- The adjuster’s name, name of the insurance company, and its address
- The date the letter was written
- A subject line to demonstrate intent. It is advisable to use ‘For Settlement Purposes Only’
- Your insured name and claim number
The Body
This is the most crucial part of your letter and should detail the following:
- The date of the accident
- A description of the accident
- Information about the liable party
- Your current medical condition
- Your treatment or expenses
The Closing
Finally, close your letter by listing your total compensation demand, providing your contact information, and imposing a timeline on the insurance company’s response
Letter to Insurance Company for Claim Settlement (Format)
{Date}
{Adjuster’s Name}
{Insurance Company Name}
{Insurance Company Address}
{City, State, Zip Code}
Re: For Settlement Purposes Only
Insured: {Name of Insured}
Dear {Mr./Mrs./Ms. Last Name},
I am a policy holder at {insurance company name}, {provide your insurance details}. On {date of accident/event}, {describe the accident/event that led to your losses in detail}. I am writing to file a claim for financial settlement to cover my losses.
The mentioned accident was caused by {mention who was liable for your losses}, and I suffered the following losses:
Type of loss 1 – {Amount in dollars}
Type of loss 2 – {Amount in dollars}
I have attached copies of {mention relevant documents}. To cover all my losses, I am demanding a settlement of {amount}, to be processed by {deadline}.
I am available to answer any questions through {contact information}.
Thank you for your prompt attention to this matter.
Sincerely,
{Your Name}
{Your Signature}
Sample Insurance Company Demand Letter
6 April 2031
Eunice Diaz
Insureds Insurance Company
479 Main Street
Bayonne, NJ 99086
Re: For Settlement Purposes Only
Insured: Melvin Thorpe
Dear Mrs. Diaz,
I am a policy holder at Insureds Insurance Company, policy holder ID 2990/MT for a $20,000 personal insurance protection (PIP) cover from 1 January 2025 to 1 January 2035. On 2 April 2031, I was involved in a fender bender with another vehicle on 231 Thorn St. I am writing to file a claim for financial settlement to cover my losses.
My PIP cover allows me to seek compensation for any auto accident, regardless of who was at fault. I am, therefore, filing a claim for the following losses:
Vehicle damage – $2,000
Medical treatment – $1,000
I have attached copies of my vehicle repair receipts, medical records, and pictures of my injuries and damage to my vehicle. To cover all my losses, I am demanding a settlement of $3,500, to be processed by 15 April 2031.
I am available to answer any questions through melvinethorpe@email.com.
Thank you for your prompt attention to this matter.
Sincerely,
Melvin Thorpe
Claim Settlement Demand Letter (Word Template)
Key Takeaways
A well-written letter to insurance company for claim settlement is more than just a list of demands for your insurer. It also details exactly how the accident or event happened, the losses you suffered and continue to suffer as a result, and the amount you should receive in compensation.
