Claim Reduction
/ˈkleɪm rɪˈdʌkʃən/
Definitions
- (n.) A decrease in the amount or value of a legal claim, often due to set-off, settlement, or partial payment.
The court approved the claim reduction following the debtor's partial repayment.
- (n.) An adjustment reducing the amount payable on an insurance claim based on policy limits or deductibles.
The insurer applied a claim reduction to account for the deductible specified in the policy.
Forms
- claim reductions
Related terms
See also
Commentary
Claim reduction commonly arises in contexts where claims are adjusted to reflect prior payments or offsets; precise drafting should specify the method and basis for reduction to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.