Claim Settlement Ratio: Claim Settlement Ratio measures the claims settled or paid by an insurance company during a financial year. It is calculated by dividing the total claims made by the total claims settled.
Whenever you buy a policy, you look at many things including its features. The most important thing to be kept in mind while taking an insurance policy is the Claim Settlement Ratio, which tells you what is the record of that company in terms of settling the claims of the policyholders.
Claim settlement ratio measures the claims settled or paid by an insurance company during a financial year. It is calculated by dividing the total claims made by the total claims settled. Suppose 100 claims have been made to an insurance company and out of them that company has settled 90 claims, then the claim settlement ratio of that company will be 90 percent and the claim rejection rate will be 10 percent.
It is important to look at the settlement ratio in choosing the right company.
While taking a policy, we should choose a company which has the best claim settlement ratio. Let us tell you that the insurance regulator releases claim settlement ratio data every year. According to an annual report of the Insurance Regulatory and Development Authority of India (IRDAI), the claim settlement ratio of life insurance companies in the country has decreased compared to last year. In the year 2022-23, its figure decreased to 98.45 percent, whereas in the previous year 2021-22 it was 98.64 percent.
Claim Settlement Ratio for Q2 FY2024-
- ICICI Prudential Life Insurance – 98.14 percent
- Tata AIA Life Insurance – 90.55 percent
- HDFC Life – 96.62 percent
- Bajaj Allianz Life Insurance – 91.79 percent
- Max Life Insurance – 95.90 percent
- SBI Life Insurance – 95.67 percent
