Best Car Insurance Companies in Claim Settlement in India

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Know The Top Car Insurance Companies In Claim Settlement In India

Before you invest your hard-earned money in any car insurance company you need to know the 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 2021 the better it is for you.

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.

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.

The 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

The 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 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 of various companies in India when it comes to the OD policies.

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 car insurance claim settlement ratio when it comes to the TP policies.

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 2021 is not the only reason why you should choose such a company. If you want to choose the best insurer 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.

Conclusion 

So, along with the motor insurance claim settlement ratio 2020-21, 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.

Also Read: Documents Required for Car Insurance Claim Process

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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