Prices Increasing Soon

Importance of Claim Settlement Ratio in India

The claim settlement ratio is one of the most important aspects of the Indian insurance industry. The claim settlement ratio essentially highlights the aspect of the number of claims settled out of the complete claims obtained by the insurance sector.

Gets ₹1 Cr. Life Cover at just

COVID-19 Covered

The Policybazaar Advantage

Dedicated claim support for family FREE

Upto 10% discount for buying online

Only certified experts will call you on 100% recorded lines

We are rated^~

6.7 Crore

Registered Consumers

Insurance Partners

3.4 Crore

Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future

Get ₹1 Crore Life cover starting from ₹384/month⁺

Male

Female

Name

Date of Birth

Mobile Number

+91

We don’t spam

Check Your Premium Now

Get Updates on WhatsApp

In case an individual intends to buy a term insurance policy, the claim settlement ratio is one of the principal factors that should be taken into account. Buying a term plan is important to secure the financial future of the family. However, before buying the term insurance plan, it is better to check the claim settlement ratio of the life insurance company.

The claim settlement ratio is a measurement used for assessing the reliability of the insurance company in terms of paying the claims.

But wait, let me tell you something

The claim settlement ratio can be calculated by using the following formula:

Claim Settlement Ratio= The total number of claims paid during the period/ the total received claims

The IRDAI publishes and makes a ratio of all the insurance companies in India, which is brought into the public domain in the initial month of the calendar year. A policyholder should not just take into account the ratio of the companies but should also observe the number of claims received by the company.

How Consistent Should be the Claim Settlement Ratio?

To simply put, regardless of whether an individual buys a term insurance plan or a life insurance plan, etc. claim settlement ratio of the insurance company is important. Besides, the consistency of the claim settlement ratio holds utmost significant importance. While selecting the insurance company, it is advisable to look for the claim settlement ratio of the companies in the recent five years.

No wonder the rule is simple smaller is the range of the CSR, reliable and better is the insurance company. For instance, the insurance company with a ratio in the range of 90% to 96% is more reliable compared to a company with the CSR in the range of 75% to 93%.

People also search for

What is Term Life Insurance

Claim Settlement Ratio of Life Insurance Companies in India

The table below shows the claim settlement ratio of the various life insurance companies in India and is as per the yearly report of IRDAI 2019-2020:

Insurance Companies	Complete Number of Claims	Claims Paid	Claims Repudiated	Claims Rejected	Death Claim Settlement Ratio
Aditya Birla Sun Life	5162	5035	108	0	97.54%
Aegon	351	344	7	0	98.01%
Aviva	810	790	11	4	97.53%
Bajaj Allianz	12127	11887	237	0	98.02%
Bharti AXA	1320	1285	33	0	97.35%
Canara HSBC OBC	1276	1252	22	0	98.12%
Edelweiss Tokio	326	272	54	0	83.44%
Exide Life	3468	3404	26	0	98.15%
Future Generali	1143	1089	51	0	95.28%
HDFC	12626	12509	54	15	99.07%
ICICI Prudential	11460	11212	153	0	97.84%
IDBI Federal	1416	1366	45	0	96.47%
India First	2241	2166	66	0	96.65%
Kotak Mahindra	3346	3225	112	0	96.38%
LIC	758916	733809	6124	2172	96.69%
Max Life	15643	15342	120	0	99.22%
PNB MetLife	4364	4241	123	0	97.18%
Pramerica Life	569	560	7	0	98.42%
Reliance Nippon	8017	7866	149	0	98.12%
Sahara	654	585	10	13	89.45%
SBI Life	22490	21257	1157	0	94.52%
Shriram	3074	2816	195	58	91.61%
Star Union	1248	1210	35	0	96.96%
TATA AIA	2982	2954	28	0	99.06%

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
What is the Process to Settle the Claims?

Take a look below to understand the process of settling the claims:

Reporting

At the onset, an individual should make sure that the claims are reported on time. The claims can be easily reported at the respective branch, online or central office. The policyholder can also contact customer support or drop an email. Reporting is of prime importance and for a policyholder is more approachable.

Quick Processing

The processing of the claim needs to be quick. Moreover, the process of the claim settlement should not be tedious and the customer should have a hassle-free experience. The less is the average turnaround time to settle the claim, the better it will be.

Settlement

Once all the relevant documents are duly assessed and approved only then the final settlement will take place. The claims need to be settled as quickly as possible right from the intimation date.

Why buy Term Insurance early?

Your premium is decided on age at which you buy the policy and remains same, throughout your life

Premiums can increase between 4-8% each year after your Birthday

Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease

See how age affects Term Insurance Premiums

Premium ₹479/month

Age 25

Age 50

Buy Today & Save Big

View Plans

How to Avoid Rejection of Claims?

To enjoy the benefits of the insurance policy and not face a claim rejection, the policyholder should take some important steps. It generally starts when the policy papers are being signed by the policyholder. This is the time when the insurance company assesses every aspect of the policyholder such as the risk profile, and so forth and accordingly underwrites the policy.

The following are the steps that should be followed to avoid claim rejection:

To begin with, the policyholder should disclose all the information to the insurance company. Specifically in terms of smoking habits and medical condition do not give any false information; however, assessing the risk will vary from insurer to insurer. In case an individual is an avid smoker or has a critical ailment that was not disclosed earlier and the insurance company gets to know about it at the time of claim chances are that it could get reject.
When purchasing the insurance plan, it is highly recommended that the policyholder should fill the form themselves. Do not let an agent fill the form as chances are that the agent might miss out on some important information.
During the free-look period, the policyholder should check the policy wordings and carefully examine the terms and conditions. In case, the policyholder is not satisfied with any clause, then the policy can be returned to the insurance company for a refund.
As soon as the policyholder buys the policy, the first person to be informed is the nominee. In case there is a need that the nominee needs to raise the claim the person needs to be aware of it. The timely claim filing is important as that would ease the claim settlement process.

By Now, You Should Know

The claim settlement ratio of the insurance provider is a good indicator to provide an insight into the policyholder in deciding the policy. However, it is highly recommended that the insurance policy should not be bought just on the premise of the claim settlement ratio. Whether an individual buys a term insurance policy or any other policy it is equally important to check the coverage being offered by the different plans from the insurance companies.

Invest time before making the final purchasing decision, assess the requirements and zero down the insurance plan that suits and fulfil the needs of the family and the financial future is duly secured.