5 min read
Updated on Nov 11, 2022
People often don’t utilize the benefits of term insurance plans as either they select the wrong plan or an unreliable insurance company. While purchasing a term plan, every buyer should pay attention to the claim settlement ratio. This simple term can make your purchase decision a hit or leave you devastated.
The claim settlement ratio is a common term in the field of the term insurance sector. The IRDA claim settlement ratio (CSR) indicates the number of claims an insurance provider used to settle in a year against the total number of claims that it received throughout the year. This term insurance claim settlement ratio exhibits a clear picture of the insurance company in front of the customers. Companies that acquire the best term plan claim settlement ratio are the most dependable and you can go ahead with them without any apprehension.
Let’s unearth it.
Claim settlement ratio = (Total claims calculated)/(Total reported claims outstanding claims at the starting of the years – outstanding claims at the end of the year)
The claim settlement ratio of term insurance companies indicates their veracity and honesty. A company that possesses a higher ratio is considered more reliable as compared to others. With this type of company, your chances of getting a claim settlement will also rise.
By going through the formal website of the Insurance Regulatory and Development Authority of India (IRDAI), you can easily get the claim settlement ratio of various insurance providers.
|Popular Term Insurance Companies||Term Insurance Companies Claim Settlement Ratio (CSR) for 2021-2022|
|Max Life Insurance||99.35%|
|Aegon Life Insurance||99.25%|
|Bharti Axa Life Insurance||99.05%|
|DHFL Life Insurance||98.61%|
|Exide Life Insurance||98.54%|
|Kotak Life Insurance||98.50%|
|Reliance Life Insurance||98.49%|
|Bajaj Allianz Life Insurance||98.48%|
|PNB MetLife Insurance||98.17%|
|HDFC Life Insurance||98.01%|
|ICICI Prudential Life Insurance||97.90%|
|Aditya Birla Sun Life Insurance||98.04%|
|Canara HSBC Life Insurance||97.10%|
This strengthens the financial security and firmness of a customer. The prime purpose of a term insurance plan is to offer financial protection to the rest of the family members under any untoward circumstances. If your chosen insurance company settles your claims, then, your family members will receive a healthy sum assured through a hassle-free claim process. With a term plan claim ratio, you can be assured that your loved ones will never face any financial crisis in case of your untimely demise.
If your selected insurer follows a decent CSR over a stipulated period, then it will settle your claim efficiently without any deferral.
By using the below-mentioned formula, you can calculate the claim settlement ratio of an insurer.
Claim Settlement Ratio (CSR) = (Total number of claims settled in a year/ Total number of claims in a year) X 100
Suppose, an Indian insurer settled 9,700 claims out of the 10,000 claims for 2021-2022. Then, its CSR will be 97% (9,700/10,000*100)
When an insured policyholder passed away due to some unfortunate incidents, family members of the late policyholders may face acrimonious experiences to get the claims against the term insurance policy plan. Here, we are mentioning 5 steps for a quick claim settlement process.
To make your term insurance policy plan worthy, enquire about the insurance company, especially its claim settlement ratio. Don’t forget to consider the below-mentioned points while comparing term insurance plans of various insurers.
While purchasing a term plan, a buyer should understand an insurance provider will not reject claims without any lawful reasons. Some mistakes of the policyholders encourage insurance companies to reject claims. Let’s take a look at some of the reasons for claim rejection.
Every Indian insurance company follows a set of guidelines while settling the claims of the customers and all policy buyers should respect this. To make your claim settlement process smooth and healthy, don’t forget to check the claim settlement ratio of your chosen insurer. If you are not satisfied, then look for another option.
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