TATA AIA Claim Settlement Ratio

Nearly all the policyholders for once examine the Claim settlement ratio before buying an insurance policy that is suitable for their family and serves their needs accordingly. The basic reason behind it is that Claim settlement is the salient service provided by an insurer.  A customer can get a hand at the claim settlement ratio of every company in the annual report of IRDA.

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TATA AIA Claim Settlement Ratio is the measure of claims settled in a financial year by the company.  According to the Annual Report of the Insurance Regulatory and Development Authority of India published on 10th of February 2021 The TATA AIA Claim Settlement Ratio for the year 2019-20 is 99.06%. 

TATA AIA CSR

It is crucial for every customer to have knowledge about how the TATA AIA Claim Settlement Ratio is calculated. It is the number of claims settled against the total number of claims registered in one financial year. It is attained by putting the terms in a mathematical statement and calculating the answer. Here the total number of claims registered is the sum of claims that are pending at the start of a financial year and the number of claims registered during a financial year. When expressed:

  • TATA AIA Claim Settlement Ratio = Total TATA AIA Claims Settled/ Total TATA AIA Claims registered.

(Total TATA AIA Claims Registered + Claims pending at the beginning of the year + the claims filed during the year)  

As an example, let us consider the TATA AIA Claim Settlement Ratio for the financial year 2018-19 as per the IRDA annual report:

TATA AIA Claim Settlement Ration for 2019-2020

Pending Claims carried Over

Claims Registered

Total Claims 

Claims Settled

Claim Settlement Ratio

0

2982

2982

2954

99.06%

Source: IRDA Annual Report 

Though the above method is of great significance and can be counted on when checking for a suitable insurance provider, yet it is always good to also have a look at the Claim settled amount. It is a representation of the insurer’s ability to fulfil the financial claims of the policyholder at the time of need without any complications.

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What does Tata AIA Claim Settlement Ratio Represent?

Let us have a look at how the TATA AIA Claim Settlement Ratio has carried out during the past few years:

TATA AIA Claim Settlement Ratio based on the number count

Financial Year 

 Claims Registered

Claims Settled

Ratio in %

2015-16

3311

3205

96.80

2016-17

2707

2599

96.01

2017-18

2850

2793

98.00

2018-19

2700

2675

99.07

2019-20

2982

2954

99.06

Above are the stats, which represent the TATA AIA Claim Settlement Ratio for individual policies from the year 2015 to 2020. It displays figures of the total claims registered, total claims settled, and also the claim settlement ratio of the consecutive years. Here is an example to illustrate the calculation of the claim settlement ratio for the financial year of 2019-20:

  • Claims registered during the year (A): 2982
  • Claims settled during the year (B):       2954

The TATA AIA Claim Settlement Ratio for 2019-20 = (B)/(A)*100 i.e. 2954/2982*100 = 99.06%. 

A good CSR is essential but being consistent in performance is also no less of a criterion. A company that shows consistency in its claim settlement ratio without astonishing differences is comparatively considered more reliable. The above statistics depict a good and consistent performance by the TATA AIA Claim Settlement Ratio.

Along with the Claim Settlement Ratio, it is also necessary to check the ratio of Amount settled as it portrays the financial strengths of the company.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

TATA AIA Claim Settlement Ratio based settled amount

Financial Year 

Total Claim Amount (Rs Crore)

Claim Amount Paid (Rs Crore)

Ratio in %

2015-16

92.41

87.09

94.24

2016-17

89.94

76.54

90.10

2017-18

140.25

131.84

94.00

2018-19

150.72

145

96.12

2019-20

231.96

222.47

95.91

The Index above depicts the TATA AIA Claim Amount Settlement Ratio for individual policies from the year 2015 to 2020. The total claim amount is based on the assured sum for the registered claims. Here is an example of the Ratio of the claim amount settled in the year 2019-2020:    

  • Amount of registered claims during the year (A): Rs. 231.96 Crore
  • Amount of settled claims during the year (B):       Rs.222.47 Crore

The TATA AIA Claim Settlement Ratio for 2019-20 = (B)/(A)*100 i.e. 222.47/231.96*100 = 89.74%. 

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What information do we get with Tata CSR?

Each policyholder consults the TATA AIA Claim Settlement Ratio, before obtaining a plan for himself and his family. It is an important factor and gives us an insight into the company’s reliability but it is necessary to contemplate the following factors:

  • It is a numerical term and has no way of depicting the types of claims that have been settled.
  • It is a percentage depiction thus, does not provide an accurate number of claims settled.
  • The claim settlement percentage when it is not a cent per cent value can be used to determine the percentage of claims repudiated.
  • The statistics only cover the time of one financial year, that is from the month of April till the next month of March.

About TATA AIA Life Insurance Company

TATA AIA Insurance Company is a TATA Sons firm conducted in conjunction with the American international Assurance Group Lt. The Company provides various term insurances for retirement plans, child future, savings plans along with its highlight policy of Life Insurance known as the Maha Raksha Supreme Policy. The visionary company wishes to provide a healthier and happier future to its customers and aspires to be the most eminent insurance provider in the country. An impressive figure of 99.06% as the TATA AIA Claims Settlement Ratio gives an insight into the company’s credibility and how well they have stood up to their aim. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Over to you

The TATA AIA Claim Settlement Ratio is an evaluation of the company’s potential to settle claims registered and assist its customers with necessary financial aid when required.  The previous years’ statistics have presented a good picture and the company can surely be counted as credible. On the contrary, the low claim settlement ratio depicts flawed executive strategies in the company which is absent in the case of TATA AIA Life Insurance company.

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Written By: PolicyBazaar
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