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Anyone who has worked with insurance policy datasets, please guide me to an appropriate dataset for this problem .

Also, what is this 'loss amount' and what model will be appropriate for it?

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Loss amount - "In insurance. The diminution, destruction, or defeat of the value of, or of the charge upon, the insured subject to the assured, by the direct consequence of the operation of the risk insured against, according to its value in the policy, or in contribution, for loss, so far as its value is covered by the insurance" (not exactly my area of expertise).

If you are looking for "insurance policy datasets", you can try the following link:

insurance data on data.world

You would probably need some regression model, but you are not providing enough information for more specific answer.

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