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.
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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.
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%.
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:
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.
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.
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.
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
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:
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.