While taking a life insurance policy, most of the people do not take information about the Claim Settlement Ratio or CSR (Claim Settlement Ratio) of the life insurance company. However, it is very important for policyholders to know this.
Before buying, renewing or porting an insurance policy, you need to keep many things in mind. One of the most important of which is how the insurer settles the claim. While taking a life insurance policy, most of the people do not take information about the Claim Settlement Ratio or CSR (Claim Settlement Ratio) of the life insurance company. However, it is very important for policyholders to know this. This shows what percentage of the claim the insurance company has settled.
Actually, the Claim Settlement Ratio or CSR is revealed by the total claims settled or given by a life insurance company during a financial year. This is calculated by dividing the total claims made by the total claims settled.
Insurance Regulatory and Development Authority of India (IRDAI) has released the details of claims payment of general and health insurance companies for the financial year 2021-22.
Navi General Insurance leads in settlement
Among private general insurance companies, Navi General Insurance (formerly DHFL General Insurance) has secured the first position in the list with 99.99 percent claims settled. Navi General Insurance has topped the list of claims settled in the first three months of inception. After this, Reliance General Insurance has succeeded in settling 98.65 percent claims and HDFC ERGO General Insurance has succeeded in settling 98.49 percent claims within the first three month period.
Public sector companies lag behind:
In the first three months, the claim settlement ratio of public sector general insurance companies is relatively lower as compared to private insurance companies. United India Insurance has topped the chart with a claim settlement ratio of 97.25 percent. The ratio of New India Assurance in settling claims for the first three months period has been 92.93 percent and after that Oriental Insurance has settled 90.18 percent claims.
Among stand-alone health insurance companies, Care Health Insurance settled 100 percent of the claims within the first three months. Four stand-alone health insurers, including Aditya Birla Health Insurance, Manipal Cigna Health Insurance, Niva Bupa Health Insurance and Star Health Insurance, also recorded more than 99 per cent claim settlement in the first three months of the financial year 2021-22.
Choose a company with CSR more than 97 percent.
Before purchasing a policy, choose an insurance company which has the best claim settlement ratio. Before choosing the right insurance company, check their CSR. The insurance regulator releases claim settlement ratio data every year. The higher the claim settlement ratio, the better the claim record of the company. A claim settlement ratio figure of more than 97 percent is considered safe. You can check the credibility of your insurance company through claim settlement ratio.
