Kotak Life Claim Settlement Ratio

What is Claim Settlement Ratio?

Not every claim made is approved by the insurer. Before settling a claim after the policyholder's death, the insurance companies check if the conditions meet the conditions mentioned in the policy schedule.

The ratio of the number of settled claims by an insurance provider to the total number of claim requests received by them in a given accounting period is known as the Claim Settlement Ratio (CSR) of the insurer. The CSR of a company can be measured easily and expressed in terms of percentage. Kotak Life is known to settle multiple claims through its fast-paced and simple claim procedure. 

The Kotak Mahindra Life Insurance claim settlement process is easy and does not cause any inconvenience to the policyholder. The Claim Settlement Ratio (CSR) of Kotak Life Insurance for the financial year as per the IRDA Annual Report is 98.5%.

Kotak Life calculates the claims ratio by the given formula:

Claim Settlement Ratio (CSR) = Number of claims settled successfully / Total insurance claims filed by the policyholders

What Does it Represent?

To choose the right life insurance company as per their needs, one should check various aspects such as the types of policies and covers offered, customer reviews, etc. Also, they should not make the mistake of overlooking the claims ratio. Assessing the IRDA Claim Settlement Ratio for an insurance company before selecting and buying an insurance policy is important as it gives the policy seeker:

1. An Indication of Insurer’s Reliability

   Life Insurance is a critical investment that helps an individual plan their finances better. Policyholders need to pay the premium amount to avail of the policy benefits over a long duration of time. So, in case the company denies settling the policyholder's claim due to some reasons, then the entire purpose of getting life insurance is defeated, and their planning would go in vain.

   To avoid this, policy seekers can determine an insurer's trustworthiness beforehand by assessing its claims ratio. It serves as a reliable measurement that indicates whether the insurer will safeguard the policyholder's interests. A higher ratio indicates greater chances of the insurer to come through during the time of need and vice versa. 

2. Assurance About their Family’s Financial Future

   Life Insurance helps an individual secure the financial future of their dependents in their absence. The last thing a policyholder would want for their family is to suffer the consequences of their insurance claim being rejected after the policyholder's death. Therefore, it is advisable to make the right choice by checking the insurer's claim settlement ratio before investing in a life insurance plan.

   To find a trustworthy insurer, policy seekers should look for:

   • A CSR value above 85%

   • A favourable persistence ratio indicates the persistence of the policyholders to renew insurance.

Conclusion

In the current era, where there is a range of life insurers available in the market, it has become of utmost importance to check the claim settlement ratio of an insurer. It is a deciding metric for policy seekers to select an insurance provider having a better chance of fulfilling their promise. Selecting a trustworthy name like Kotak Mahindra Life Insurance with a high CSR rate assures the policyholder of efficient claim clearance.

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