Claim Settlement Ratio of Top 10 General Insurance Companies

The Claim Settlement Ratio (CSR) of an insurance company is one of the top concerns when choosing an insurer for you and your family’s financial security. Here’s a list of the top 10 general insurance companies in India that boast of offering the best CSR.

Raising a claim for your financial expenses incurred in case of an emergency is one of the major components of insurance. It is also the top benefit that an insurance policyholder can avail. In fact, the decision to choose an insurance company for buying a policy is based on its Claim Settlement Ratio (CSR).

Meaning of Claim Settlement Ratio (CSR) in the Insurance Sector

As is evident from the name, Claim Settlement Ratio or CSR implies the ratio of claim settlement by a particular insurance company in the given financial year.

An insurance company receives a specific number of claims from policyholders in an entire financial year. The CSR helps determine the total number of those claims actually settled or resolved by the insurer during that particular period.

Note that the remaining claims which are unsettled by the company fall under rejected claims. The rest are all approved by the insurer upon careful inspection and verification of the claims filed by the insured.

Also Read: Types of General Insurance

Now, the CSR of an insurance company is what helps a prospect policyholder determine whether or not the insurer has a good reputation/credibility in the market with regard to claim settlement. This simply means that the company has successfully and promptly settled the claims received from the insured.

But how to know which insurance company has a good Claim Settlement Ratio? How can we be sure which insurer to rely on for purchasing general insurance plans? To help you make an informed choice, we list here some of the insurance companies with the best general insurance claim settlement ratio 2023 in India.

Why is Claim Settlement Ratio (CSR) important in Health Insurance?

Here are some points to emphasize the importance of the claim settlement ratio of general insurance companies, including health insurance:

• CSR informs the insured about the capability of the insurer to pay claims
• CSR acts as an effective system to compare insurance companies
• It shows the consistency of an insurance provider in settling claims
• It also shows the reliability of the insurer

IRDA Claim Settlement Ratio of General Insurance Companies 2023

As discussed above, the IRDA claim settlement ratio is often considered the basis for determining the credibility of an insurance company in terms of how quickly it settles the claims of its applicants. To make your choice simpler and decision more informed, we list here the best companies in India for buying general insurance:

1. Bajaj Allianz General Insurance

Bajaj Allianz has the best claim settlement ratio in general insurance with a claim settlement ratio of a whopping 98% in the year 2023 Furthermore, the company has been the recipient of iAAA rating by the ICRA for 10 years consecutively.

2. Aditya Birla Insurance Brokers Ltd. (ABIBL)

With its presence across the world, such as South-East Asia, the Middle East, and South Asia, ABIBL is a popular name in the general insurance industry. Its CSR is estimated at 94% which makes it among the top general insurance companies in India.

3. Care Health Insurance

The health insurance unit of Care Health Insurance Ltd. (CHIL), this company was formerly known by the name of Religare Health Insurance Company Ltd. It too holds a good reputation in terms of its CSR, computed at 95% by the IRDAI.

4. Bharti AXA General Insurance Co. Ltd.

Known in the general insurance market for its large number of satisfied customers every year, Bharti AXA’s claim settlement ratio stands at 92.37%. The company’s claim-settlement procedure is also rather simple and hassle free.

5. Cholamandalam MS General Insurance Company

This company not only has a decent CSR but also offers a wide range of services in the general insurance category. A few examples include home insurance, motor insurance, health insurance, travel insurance, personal accident insurance, and the like. The CSR is calculated at 95%.

6. Future Generali India Insurance Co. Ltd.

Offering customized insurance plans to suit individual requirements, the insurance company has a claim settlement ratio of 95.2%. As far as settlement of claims is concerned, the company holds pride in having minimal rejected claims.

7. IFFCO Tokio General Insurance Company Limited

Among the best general insurance service providers in India, IFFCO Tokio has a claim settlement ratio of 95.82% in 2023. The company operates as a joint partnership venture between three parties – Indian Farmers Fertilizer Cooperative Ltd, Nichido Fire Group of Japan, and IFFCO Tokio Marine.

8. Go Digit General Insurance Ltd

This company is fast emerging as a popular insurer in India, which is evident in its number of insurance plans sold every year in different categories – health, motor, travel insurance, and the like. Go Digit holds an impressive claim settlement ratio of 87% within a period of just 24 hours in 2023.

9. Liberty General Insurance Limited

With a widespread presence in 23 Indian states and over 50 cities, the company is popular for its insurance services and satisfied customers. The CSR of the company stands at 94% as in the financial year 2021-22.

10 Kotak Mahindra General Insurance Company:

The last, but definitely not the least, Kotak Mahindra is also among the best companies in India offering general insurance services to millions of customers. It has around 13 branches spread across the country offering both term insurance and other forms of insurance services. The CSR for the company was calculated at 68.06% as in 2018-19.

Also Read: GIPSA

Health Insurance Companies Claim Settlement Ratio and Solvency ratio

Incurred Claim Ratio in Health Insurance – Meaning 

The ratio of the total premium amount earned by a health insurer to the total claim amount paid by the insurer to the policyholders in a year is called the Incurred Claims Ratio (ICR). If the health insurer you are willing to buy a policy from has an incurred claim ratio of 88%, it would imply that the insurer has paid INR 88 on claim settlement for every INR 100 earned as a premium. Here, the INR 12 that stays with the insurer is the profit earned by the company.

Which is the best platform to check the Incurred Claim Ratio of a health insurance company? 

The official portal of IRDAI is the most authentic and best platform where you can find the ICR of insurance companies. IRDAI publishes the ICR of all health insurance providers in India every year. They also offer ICRs of other specific insurance companies as well. You can rely on the annual report of IRDAI to evaluate the claim ratio incurred by a health insurer.

How is the Claim Settlement Ratio (CSR) of an Insurance Company Calculated?

We’ve been discussing all along that the claim settlement ratio of an insurance company is one of the prime deciding factors for choosing the company before buying an insurance plan for them.

Now let us understand how exactly the claim settlement ratio of a company is calculated by the IRDA to determine the creditworthiness of the insurer. Here is the formula for computing the CSR of insurance companies:

The total number of claims settled by the insurance company divided by the total number of claims received in a given financial year period.

Read More: Claim Settlement Ratio of Best Term Insurance Companies

Health Insurance Claim Settlement Process 

Here are two types of claim settlement processes for raising health insurance claims:

Cashless Claim Process

Cashless claim processes are filed if the insured undergoes treatment at a network hospital of the insurer. Below are the steps to file a cashless claim:

• To inform the insurer about the hospitalization is the first step and it should be done within 48 hours of a planned hospitalization and 24 hours in case of emergency hospitalization.
• The second step is to fill out the pre-authorization form at the hospital
• The hospital will send the form for approval to the insurer for cashless treatment
• The insurer will review the form and accept it. This will start the treatment of the insured
• The insurer will settle the claim with the insurer directly once the patient is discharged from the network hospital

Reimbursement Claim Process

Below are the steps to follow to raise a reimbursement claim:

• The first step is to inform the insurer about the hospitalization within 48 hours of a planned hospitalization and 24 hours in case of emergency hospitalization.
• Save all the hospital bills and receipts safely
• Fill in the claim form to Initiate the claim process and submit it to the insurer along with all the required documents and bills
• The insurer will review the bills and papers and will accept the claim. Your claimed amount will be reimbursed by the insurer in your bank account.

Documents needed for health insurance claim settlement

Below is the set of documents needed to raise a claim for health insurance:

• Claim form (duly filled)
• ID proof of insured
• Medical documents stating hospitalization of the insured by the doctor
• FIR (if it is an accident)
• Bills and receipts, cash invoices, prescriptions, and receipts from the hospital
• Any other document mentioned by the insurer

Wrapping it Up

The credibility that an insurance company holds in its trade markets holds immense value for a prospective customer who intends to buy an insurance plan from that particular company. To help him/her make an informed decision, the IRDA defines the claim settlement ratio of each company at the end of the financial year.

This ratio helps people decide how quick the company is in settling the claims received and how many claims it actually settles in the financial year. Based on these values, the customer can decide whether or not to go ahead with buying insurance from the said company. You too can make an informed choice by looking up the best general insurance companies in India online. Also make sure to check the company’s CSR value before making a decision.

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