Claim settlement refers to the process of fulfilling the obligation and responsibility of the insurer to compensate for the insurance benefits when the insured party encounters an insurance accident as stipulated in the insurance contract and requests compensation from the insurance company. This obligation and responsibility is commonly referred to as insurance claim processing, abbreviated as claim settlement. In order to better grasp claims, it is necessary to understand claims and refusal of claims.

In the process of commercial transactions, disputes often arise between buyers and sellers due to their respective rights and obligations. After a dispute arises, if one party violates the provisions of the contract and directly or indirectly causes losses to the other party, the damaged party shall demand compensation from the defaulting party within the time limit specified in the contract to compensate for the losses suffered, which is called a claim. Below are its features during using.

1. Publicity of the insured.

The insured of automobile insurance used to be mainly units and enterprises, but with the increase of the number of vehicles owned by individuals, the proportion of single car owners among the insured will gradually increase. The characteristic of these insured persons is that they purchase insurance with a significant passive color, coupled with cultural, knowledge, and cultural limitations, they have little knowledge about insurance, traffic accident handling, vehicle maintenance, and so on. On the other hand, due to the drive of interests, there are significant obstacles for inspection and adjustment personnel to communicate with them during the claims process.

2.High loss rate and small loss amplitude.

Another characteristic of automobile insurance is that although the amount of loss from insurance accidents is generally not significant, the frequency of accidents is high. Insurance companies need to invest a significant amount of effort and expenses in their business operations. Some accidents may not have a significant amount of money, but they still involve quality of service issues for the insured. Insurance companies should also pay sufficient attention to these issues. On the other hand, from the perspective of individual cases, the amount of compensation is not significant, but the accumulation of small amounts will also have a significant impact on the operation of insurance companies.

3.The subject matter has high liquidity.

Due to the functional characteristics of cars, they have considerable mobility. The location and time of vehicle accidents are uncertain, requiring insurance companies to have a well functioning service system to support claims services, with a 24-hour reporting and acceptance mechanism and a large and efficient inspection network as the main body.

4.Moral hazard is widespread.

In the property insurance business, automobile insurance is the "disaster zone" of moral hazard. Automobile insurance has the characteristics of strong liquidity of the subject matter, defects in registered residence management, asymmetric insurance information and other characteristics, as well as imperfect automobile insurance terms, imperfect relevant legal environment, and some problems and loopholes in the characteristics and management of automobile insurance operation, which give opportunities to the lawless, and automobile insurance fraud cases occur from time to time.

（Writer：Lily）