SBI Life Insurance, the largest public sector bank in the country offers a comprehensive range of insurance products such as term insurance, child plan, savings plan, pension plans, and offers quick and simplified claim settlement. With a CSR of 97.05% in the financial year 2021-22, SBI Life has been known to provide the claimants of their deceased policyholders quick claim payout. In this article, we will discuss the claim settlement ratio of SBI Life over the last 5 years years and how important it is to know the CSR before buying life insurance.Read more
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The Claim Settlement Ratio is determined by the number of death claims settled by the insurer against the number received. A higher percentage denotes a higher claim settlement efficiency of the insurer. The claim settlement ratio of SBI Life Insurance for the financial year 2021-22 is 97.05%, which indicates that the insurer can settle claims without hassle.
Claim Settlement Ratio of any insurance company is their percentage of the total number of claims that they have settled in one financial year, further divided by the total number of claim requests they had received in that year. You must firstly understand the importance of claim settlement ratio (CSR) before you purchase a plan, and below mentioned are a few of the reasons:
If an insurance company has higher CSR, it is most sought after by people, as it implies that the company is trustworthy and responsible, and will have the claims settled efficiently. This builds a level of trust among customers for the insurer as they buy life insurance plans for their loved ones. However, you must check the claim settlement ratio of five consecutive years of any insurer before you purchase a plan from them.
It is important to check the CSR of any insurer as a policyholder because you must be absolutely certain about the company in which you are trusting your family’s future. Moreover, an insurance company with higher CSR will ensure that their customers are helped with claim settlement without hassle.
It is essential to understand how the SBI Life Claim Settlement Ratio is calculated. It is primarily the percentage of claims settled against claims received in a financial year. It is derived by dividing the number of claims settled by the total number of claims received in a financial year plus the previous year’s outstanding. It is expressed in terms of percentage for easy comparison with other insurers. Thus, in simple terms:
SBI Life Claim Settlement Ratio = Total number of SBI Life claims settled divided by Total number of SBI Life claims received, & multiplied by 100
*Note: Total SBI Life Claims Received = SBI life Claims registered in the financial year plus claims pending at the year beginning
Though a great emphasis is laid on the above formula, it is sensible to look for the ratio in a different light by checking the settled amount also. It represents the insurer’s financial strength and ability to settle claims seamlessly. A higher CSR may show a lower ratio in terms of benefit amount payment.
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Let us see how the SBI Life Claim Settlement Ratio has played out during the past few years:
|SBI Life Claim Settlement Ratio based on the number count|
|Financial Year||Claims Registered||Claims Settled||Ratio in %|
The aforementioned table represents the SBI Life Claim Settlement Ratio only for individual policies and not group policies. The CSR of SBI Life has been above 90% for 5 consecutive years, which implies that this insurer can be trusted when it comes to settling claims.
The policyholder invariably consults the SBI Life Claim Settlement Ratio before deciding to buy a suitable plan in harmony with financial planning objectives and life goals. While it is an important indicator, it is essential to consider the following.
The CSR does not depict the type of policies covered in the settled claims.
The ratio is always denoted in percentage forms.
The repudiation percentage is arrived at by deducting the ratio from 100.
The ratio is for only the financial year, beginning from April of the current year to March next year, as per the IRDAI regulations.
The SBI Life Claim Settlement Ratio is a measure of its credibility regarding a seamless claim settlement experience. A high ratio shows that the insurer can be trusted in terms of settling claims efficiently, and also signifies that the claim settlement probability is high. A low ratio, on the other hand, suggests that the claim settlement may be jeopardized and is not free from hassle. While CSR is not the sole criterion, it is a critical factor in purchasing a policy.