When is it permissible to close a claims file?

The correct answer is when all benefits have been paid. This reflects a key principle in claims handling where a case should typically be closed only after all obligations towards the claimant have been fulfilled. Once the insurer has made all payments due for medical expenses, indemnity, and any other applicable benefits, the claim can be deemed resolved.

In practice, simply deciding to discontinue a claim, having a claim pending for an extended period, or the claimant deciding to withdraw does not inherently signify that all obligations to the claimant have been met. Such actions may involve different procedural requirements or implications. For instance, a claim could remain open due to medical treatment still ongoing or other compensatory benefits that may still need to be disbursed, necessitating that the file stay active until all financial responsibilities are addressed.