Okuzeka
Insurance vocabulary · Claims

Settlement

Meaning in insurance, with examples

/ˈsetəlmənt/nounCommon term

In insurance, settlement means: The final agreement on a claim and the payment that closes it, made after the insurer and the claimant accept the amount.

In Turkish: hasar ödemesi, tazminatın ödenmesi, uzlaşma

How it is used

Claims teams aim for fast, fair settlements. A settlement can be offered, negotiated, accepted or rejected, and settlement time is a key performance measure. The verb is 'settle': 'We settled the claim in ten days.'

Example sentences

  1. The customer accepted our settlement offer of 85,000 lira.

  2. Average settlement time for motor claims fell to 12 days.

Common collocations

  • settlement offer
  • reach a settlement
  • settle a claim
  • settlement amount
  • cash settlement
  • claimA formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.
  • payoutThe money an insurance company pays to a customer or beneficiary after a valid claim.
  • claims adjusterA specialist who investigates a claim, inspects the damage and decides how much the insurance company should pay.
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Claims

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This page explains English vocabulary for learners. It is not financial advice.