First Notice of Loss – FNOL

Reviewed by Sujaini | Updated on Aug 27, 2020

What is the First Notice of Loss (FNOL)?

The First Notice of Loss (FNOL) is the first notification to an insurance provider after an insured asset's loss, theft, or injury. The FNOL, also known as the First Loss Notification, is usually the first step in the lifecycle of the structured claims process. The First Notice of Loss usually comes before any formal, official claim is filed. Consumers and businesses usually adopt a procedure when creating an FNOL.

Procedures for the First Notice of Loss

The cycle of insurance claims includes a number of procedures from the time the insurer is informed when a settlement is made. First Loss Notification (FNOL) begins the wheel of the insurance process, which is when the policyholder notifies an unfortunate event to the insurer.

In the case of auto insurance, a driver informs the insurance company of a crash involving a vehicle. The driver matches a claims adjuster whose job is to assess fault and settlement amount. The adjuster decides the extent and severity of the car damage suffered by the policyholder.

His determination is based on the police report, the testimony of the other driver, any witness account of the crash, a report from a medical examiner, and the damage done to the insured vehicle.

What is Required to File an FNOL?

The FNOL usually requires the insured to provide the following information: policy number, date and time of theft or injury, location of the incident, police report number, and personal account of how the incident occurred.

In the case of lawsuits for car damage, the insured must also include information on the insurance details of the other party. In addition to this material, the claims adjuster also uses the other driver's accounts and available witnesses, and may visit the accident scene to assess fault. If the policyholder is found to be at fault, both parties will be compensated by the insurance company for the cost of repairs and bodily harm.