Customers purchase a life insurance policy as a long-term investment in life. It is their duty to ascertain adequate coverage for times of need. Since multiple factors account for a good insurance policy, the claim settlement ratio (CSR) of the insurer is the most important of all.Read more
Higher CSR means that the insurer will provide them with a hassle-free experience while claiming the policy. Exide Life Insurance is one such insurer that has a high Claim Settlement Ratio and offers multiple benefits to its customers.
The claim settlement ratio is an index that represents the dependability of an insurer. It indicates the number of claims the insurance provider closed as opposed to the number of claims the company receives in a year. This index is calculated at the end of each financial year. A consistent claims ratio over the years is desirable to any insurance provider.
The claim settlement ratio is one of the first indicators of the health of a company. A thriving insurance company will automatically boast a high claims ratio.
To understand how Exide Life Insurance Claim Settlement Ratio one has to keep a few pointers in mind:
This ratio is calculated as a percentage
A higher claims ratio represents the greater dependability of the company.
It is calculated by dividing the total number of claims honoured by the number of claims the company receives in a year.
The formula to calculate the CSR can be expressed as follows:
Exide Life Insurance Claim Settlement Ratio = the total number of claims closed / Total number of claims.
Wherein, total number of claims = Number of claims registered in a year + Any pending claims from the previous year that have been carried over.
If we are to consider Exide Life Insurance Claim Settlement Ratio for the year 2018 - 2019
|Insurance Provider||Pending Claims||Claims Received||Total number of claims||Number of claims closed||Claim Settlement Ratio|
This ratio is a clear indicator of the commitment of the company towards its customers. A company with a higher CSR displays better efficiency at settling insurance claims and is more dependable. Most customers prefer to invest in life insurance companies that have a higher CSR as this gives them a better sense of security.
Exide Life Insurance Claim Settlement Ratio for the past five years are represented in the table below:
|Financial Year||Claim Settlement Ratio in percentage|
|2014 - 2015||86.10%|
|2015 - 2016||89.36%|
|2016 - 2017||96.40%|
|2017 - 2018||96.81%|
|2017 - 2019||97.03%|
*Table mentions an index of Exide Life Insurance Claims Ratio over the past five years*
Exide Life Insurance Claims Ratio gives a fair idea of the situation of the company and should be assessed before a customer invests in any of their policies.
However, there are more factors that the customer must take into consideration while purchasing the life policy.
Here’s what Exide Life Insurance CSR Offers:
The CSR is calculated despite the kind of policies sold by the company.
CSR is always represented as a percentage.
The rejected claims are calculated by misusing the settled claims from 100.
The CSR depicted is for a particular financial year only. Every year the CSR is recalibrated based on the performance of the company.
Exide Life Insurance Company Limited is a reliable insurance provider that has been in the business since the year 2001. Exide Life Insurance Claim Settlement Ratio of 97.03% assures of their customer-centric processes. These figures are per the reports issued by IRDA. This essentially means that for every 100 claims that the company receives, the company successfully settled 97.03 of them.
Claim Settlement Ratio is a valid indicator of the probability of an insurance claim being settled in full at the right time. It ensures the financial independence of the beneficiaries of a policyholder. It allows the policyholder to view the success rate of the company. A detailed study of the CSR of an insurer is mandatory before a person invests in any policy provided by the company.