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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).
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.
Here are some points to emphasize the importance of the claim settlement ratio of general insurance companies, including health insurance:
|Top General Insurance Companies||Claim Settlement Ratio (CSR)|
|Bajaj Allianz General Insurance||98%|
|Aditya Birla Insurance Brokers Ltd. (ABIBL)||94.00%|
|Care Health Insurance||95.00%|
|Bharti AXA General Insurance Co. Ltd.||92.37%|
|Cholamandalam MS General Insurance||95.00%|
|Future Generali India Insurance Co. Ltd.||95.20%|
|IFFCO Tokio General Insurance Company Limited||95.82%|
|Go Digit General Insurance Ltd||87%|
|Liberty General Insurance Limited||94.00%|
|Kotak Mahindra General Insurance Company||68.00%|
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:
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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 Company||Claim settlement ratio (CSR) 2021-22||Solvency ratio (2021-22)|
|Care Health Insurance Ltd.||100||1.81|
|Aditya Birla Health Insurance Co. Ltd||99.41||1.73|
|HDFC ERGO General Insurance Co. Ltd.||98.49||1.68|
|ManipalCigna Health Insurance Co. Ltd.||99.90||1.67|
|Niva Bupa Insurance Company||99.99||1.70|
|Navi General Insurance Ltd.||99.99||2.00|
|Star Health and Allied Insurance Co. Ltd.||99.06||1.70|
|SBI General Insurance Co. Ltd.||95.04||1.98|
|Reliance General Insurance Co. Ltd.||98.65||1.67|
|Liberty General Insurance Ltd.||97.30||2.85|
|Kotak Mahindra General Insurance Co. Ltd.||96.90||2.13|
|IFFCO Tokio General Insurance Co. Ltd.||89.38||1.64|
|Go Digit General Insurance Ltd.||96.09||1.77|
|Cholamandalam MS General Insurance Co. Ltd.||93.23||1.89|
|Future Generali India Insurance Co. Ltd.||96.01||1.61|
|Bharti AXA General Insurance Co. Ltd.||99.09||1.72|
|Bajaj Allianz General Insurance Co. Ltd||96.59||3.41|
|Acko General Insurance Ltd.||97.20||1.84|
|ICICI Lombard General Insurance Co. Ltd.||97.07||2.54|
|United India Insurance Co. Ltd.||97.25||0.82|
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.
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.
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.
Here are two types of claim settlement processes for raising health insurance claims:
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:
Below are the steps to follow to raise a reimbursement claim:
Below is the set of documents needed to raise a claim for health insurance:
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.
The IRDAI’s annual report states the CSR of insurance companies. As per the report, Care Health Insurance with 100% CSR in 2021-2022 has the highest CSR in India.
80% and above is considered a good CSR in health insurance.
The formula to calculate CSR is:
total claims settled divided by total claims filed multiplied by 100
You can find CSR and other information about insurance companies in the official portal of IRDAI.
As per the IRDAI guidance, the insurance company should settle claims in a month (30 days)
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