There are many criteria that you must consider before you choose an insurer. You have to select a plan that is most suitable for your requirement, think of the premium amount and the interval period between the premiums, consider the adequacy of the benefits assured under the plan, never satisfy with a single insurer’s offer, there are many others to choose, maybe there are some with more benefits at less premium, if you believe that you have found the ideal plan that suits and match all your purpose and conditions, do not end your search here—look how generous your future insurer is in admitting a genuine claim, this generosity is otherwise termed as “Claim Settlement Ratio” in insurance parlance.
What Is Claim Settlement Ratio?
Claim Settlement Ratio is the ratio between the numbers of claim settled by an insurance company to the number of claim received from the insured. An insurance company with a good claim settlement ratio brings confidence and trust in the minds of the insured on the insurer.
It is evident that the insurers in the public sector have on an average higher claim settlement ratio over the private insurers.
Here is a table below that shows the numbers of claim accepted, denied and pending by the public and private insurers.
|Insurance Sector||Percentage of Claims settled||Claims Denied and written back||Claims pending|
The claim settlements are always high in the public sector insurance, but still many insurers from the private sectors are doing good business because they have more varieties, their policies are more unique, mode of premium payments are very convenient and the whole process is supported by good customer relation service and marketing.
Claim Settlement Ratio Of Insurance Companies In India
Claim Settlement Ratio as per IRDA Report 2009—10: (The Top Ten in descending order of performance as per claim settlement ratio)
|Company||Total Claims||Claim Settlement Ratio||Claim Paid||Claim Rejected||Claims Pending|
The last data available for the year ended 31st March, 2011, show that LIC has repudiated death claim by 1.21% of total claim where as the average of such ratio for the private insurers is 7.60% (the real figure of repudiation among private insurers vary from a low of 3.27 percent to 44 percent).
However, this figure does not reveal the whole truth, because the death claims are rejected only when the insurance company finds that some material facts (existence of other policy or some disease) were undisclosed. If there were full disclosure during the time of making the policy and the claim is made within 2 years of death, then no insurance company can deny a claim. For example, a person suffering with diabetes must disclose this fact including the treatment and medicine he is taking. It may make him to pay higher premiums but when the insurer accepts his policy, cannot deny its claim subsequently.
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