Car Insurance Claim Settlement Ratio 2022-23 of Best Car Insurance Companies in India

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Car Insurance Claim Settlement Ratio 2022-23 – Know The Top Car Insurance Companies In Claim Settlement

Before you invest your hard-earned money in any car insurance company you need to know the IRDA car insurance claim settlement ratio of the same.

Right now, IRDAI (Insurance Regulatory and Development Authority of India) has authorized around 25 general insurance companies to offer car insurance policies across the country. Since there are so many choices it can get really hard to choose the best from among them. One of the best ways to do so would be to compare the CSR (claim settlement ratio) of the same. The CSR basically tells you about the number of claims that the company in question has settled from the total claims that it has received from its clients.

The higher the claim settlement ratio of car insurance companies in 2022-23, the better it is for you.

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What Does Claim Settlement Mean in the Context of Car Insurance?

The term claim settlement in the context of car insurance signifies the right of every policyholder to be reimbursed for the expenses that they incurred because of mishaps such as accidents that involved their cars. So, as a policyholder, when you file a claim with your insurer the latter pays you for the financial liability that has occurred.

This is however done as per the scope and nature of the policy in question. It is always better to look at the CSR percentage of an insurer before choosing the same.

Also Read: IRDA Claim Settlement Ratio 2022

What are the Various Kinds of Car Insurance Policies?

When it comes to the types of car insurance there are three options – third party car insurance, comprehensive car insurance, and standalone own-damage car insurance.

  • A third-party plan would insure you against TP (third-party) liabilities.
  • A standalone OD (own-damage) policy would only insure you against the damages that have been sustained by your car.
  • A comprehensive policy would provide you with both the above mentioned types of coverage.

You must always find out the motor insurance claim settlement ratio 2020-21 before you buy a policy from any such company.

How To Choose the Best Car Insurance Company in India? 

  • First Analyse your Car Insurance requirements – While choosing a car insurance company, it is always recommended to analyse your particular needs of car insurance. You must specify your coverage levels required while keeping in mind the premium you would like to pay or you can afford
  • Ensure the legitimacy of the insurer – You may check the IRDA registration number of the insurer to ensure the authenticity of the company from whom you are buying your vehicle insurance policy.
  • Check for the add-ons – Enough attention should also be given to the add-on covers that you think you might require to make your car insurance policy all-inclusive.  Buy the add-on covers such as engine protection cover, roadside assistance covers etc. to have comprehensive coverage.
  • Make online comparisons – To further the scope of your car insurance coverage, you can compare vehicle insurance policies from different companies online and go for the plan that is cost-effective
  • Check the claim settlement ratio – Make sure to check the CSR or Claim Settlement Ratio and the ICR or Incurred claim Ratio of the insurer to ensure that the insurance company is good at delivering settlements smoothly.
  • Ensure customer reviews – Finally, you can check the customer reviews of different motor insurance companies before finalizing the insurance policy that you want to buy.

Types of Car Insurance Policies in India

There are basically three types of car insurance policies that a car owner can avail. They are:

  1. Third Party Car Insurance Policy – This is a policy that has been made obligatory by the government under the Motor Vehicles Act of 1988 and is compulsory for every vehicle owner to have. It covers the risks arising out of third-party liabilities such as accidental injuries, death as well as disability of third-party people and loss of third-party property. However, it doesn’t cover the loss suffered by the insured vehicle.
  2. Comprehensive Car Insurance Policy – This is a plan that ensures complete protection of the insured car from all types of risks including natural disasters. So, you can have protection against theft, fire, floods, man-made vandalism, accidents and so on. This policy covers you for the obligatory third-party liability insurance as well as covers your own bike as well.
  3. Standalone Own Damage Car Insurance Policy – This policy covers the own damages that your own insured vehicle receives. So, any damage that your insured car sustains is covered under this plan such as fire, accidents, disasters of the nature, man-made catastrophe and so on.

Difference Between the Types of Car Insurance Policies in India

Below are the differences between the three policies:

Cover  Third-party Comprehensive  Standalone 
Third-party vehicle loss and damages Yes Yes No
Third-party property damages Yes Yes No
Third-party injury/death/disability Yes Yes No
Damage of insured car No Yes Yes
Loss incurred by insured car due to fire No Yes Yes
Loss incurred by insured car due to natural disaster No Yes Yes
Cover of Personal Accident (if opted for) Yes Yes Yes
Compulsory by Law Yes No No
Add-On coverage  No Yes Yes
Zero-Depreciation No Yes Yes

Best Companies in Terms of Own Damage (OD) Claim Settlement in India

Following are the companies with the best CSR for OD policies in 2017-18:

Insurer CSR expressed in percentage
IFFCO (Indian Farmers Fertilizer Cooperative Limited) Tokio 96.52
Royal Sundaram 94.96
New India 93.96
Tata AIG (American International Group Inc.) 91.52
Bajaj Allianz 91.46

Also Read: Claim Settlement Ratio of Health Insurance Companies

Best Companies in Terms of Third Party (TP) Claim Settlement in India

Following are the companies with the best CSR for TP policies in 2017-18:

Insurer CSR expressed in percentage
Oriental Insurance 40.79
New India 40.08
IFFCO Tokio 36.83
Bharti AXA 36.05
Cholamandalam 33.93

So, here you have the best car insurance claim settlement ratio for the TP policies.

Also Read: Process To Claim Car Insurance After an Accident in India

Own Damage Car Insurance Claim Settlement Ratio of Other Car Insurers in India

The following table shows the CSR of some of the other top insurers in India when it comes to OD policies for the 2017-18 financial year:

Insurer CSR expressed in percentage
Oriental Insurance 91.34
Universal Sompo 90.63
Future Generali 89.40
HDFC (Housing Development Finance Corporation) ERGO 89.23
SBI (State Bank of India) General 88.76
Bharti AXA 88.54
Liberty 87.96
ICICI (Industrial Credit and Investment Corporation of India) Lombard 87.65
United India 85.73
Cholamandalam 84.75
Reliance 82.93
Kotak Mahindra 80.82
Shriram 78.78
Magma HDI (Gerling Industrie Versicherung) 77.89
National Insurance 71.46

So, the above table must have provided you with a decent idea of the car insurance settlement ratio 2022-23 of various companies in India when it comes to the OD policies.

Also Read: Car depreciation calculator

Third-Party Claim Settlement Ratio of Other Car Insurers in India 

The following table furnishes the CSR of some of the other leading insurers in the country for the TP policies during the 2017-18 financial year:

Insurer CSR expressed in percentage
Royal Sundaram 30.57
Magma HDI 27.56
SBI General 26.99
Shriram 26.90
Tata AIG 26.37
United India 25.24
HDFC ERGO 23.27
Universal Sompo 22.75
ICICI Lombard 20.62
Future Generali 20.04
Reliance 18.32
Bajaj Allianz 18.20
National Insurance 15.44
Liberty 15.44
Kotak Mahindra 10.14

So, now it can be assumed that you know the best claim settlement ratio in car insurance when it comes to the TP policies.

Also Read: 9 seater car

Things to Keep in Mind While Choosing Car Insurers in India 

Following are the factors that you need to keep in mind when are looking for the best car insurer in the country:

  • the requirements you have of such a policy
  • how authentic the insurer is
  • the financial liabilities of the insurer
  • CSR
  • network of cashless garages
  • customer care service
  • company reviews

So, as you can see for yourself, the claim settlement ratio of car insurance companies 2022-23 is not the only reason why you should choose such a company. If you want to choose the best car insurance in India then you must first analyze what you need from the car insurance policy. The best way to verify the authenticity of an insurer is to ask for its IRDAI registration number.The financial liabilities of an insurer provide you with a good indication of whether it would be able to settle your claims or not.

The CSR percentage of your preferred insurer needs to be high – the higher the better it is.

If the insurer has a large network of cashless garages it is better for you as that means you have a higher chance of getting your car repaired and serviced for free. It is always important to check how well the company has been reviewed by its customers – past and present – as that helps you get a good idea of how well it has been performing in all these years.

Also Read: Documents Required for Car Insurance Claim Process

Conclusion 

So, along with the motor insurance claim settlement ratio 2022-23, these are the factors in a nutshell that you need to keep in mind when you are trying to select a car insurer for your vehicle. CSR is one of the most important factors in this particular context. In this blog, we have tried to offer you a commendable picture of the best options that you have in this particular context of car insurance. We also suggest that you buy these policies online as that helps you compare better and make the best choice.

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FAQs: Best Car Insurance Companies in Claim Settlement Ratio 2022-23, India

Which car insurance company is top in India?

There are many good car insurance companies in India that an insured can avail as per their requirement. It is important to make comparisons to ensure that you buy the best insurance policy for your car from among the ones that are available in the market.

What documents are needed to buy car insurance in India?

Proposal form of car insurance and copy of your car registration or RC is needed to buy car insurance in India.

Is it compulsory to inform my insurer if I change my car from CNG to LPG?

Yes, you must inform your insurer if you change from CNG to LPG.

Can I change my car insurance company?

Yes, you can if you are not satisfied with your insurer.

What happens to NCB if I Change my car insurer?

Your NCB gets transferred. But you can use it only after the next renewal.

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Apr 18, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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