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Claim settlement ratio is a numerical representation of an insurance company’s strength. With this, the customer can know whether the insurer is reliable in claim settlement or not. The CSR is the percentage of the total number of paid claims out of the received number of claims in a financial year. So if the CSR of a company is high, it means the company is reliable and you can buy its insurance policy. Let’s check out the advantages of a high claim settlement ratio and the list of companies with their respective CSR.
Table of Contents
- 1 Advantages of Claim Settlement Ratio
- 2 Claim Settlement Ratio of Life Insurance Companies for FY 19-20
- 3 What About the Claim Settlement Ratio of Health Insurance Companies for FY 19-20?
- 4 How to Estimate CSR?
- 5 What is the Insurance Company Claim Settlement Ratio Consistency?
- 6 Where Do you Get the Claim Settlement Ratio?
- 7 Insurance Company History
Advantages of Claim Settlement Ratio
The following is the list of advantages that you will avail if the company CSR is high:
- Smart Choice: When you know an Insurance company’s CSR, you can compare it with others and see which has the maximum ratio.
- Quick Settlement: A high CSR means a greater likelihood of claims getting settled by the insurer.
- Helps in Emergency: For Health Insurance, if a company’s CSR is high, it will be helpful for the insured as they can pay for hospitalization expenses without any trouble.
Claim Settlement Ratio of Life Insurance Companies for FY 19-20
Check the impressive claim settlement ratio posted by life insurance companies for FY 2019-20.
| Life Insurance Companies | Claim Settlement Ratio |
|---|---|
| Max Life Insurance | 99.22% |
| TATA AIA Life Insurance | 99.06% |
| ICICI Prudential Life Insurance | 97.84% |
| Pramerica Life Insurance | 98.42% |
| HDFC Life | 99.07% |
| Canara HSBC OBC | 98.12% |
| Bajaj Allianz Life Insurance | 98.02% |
| Exide Life Insurance | 98.15% |
| Reliance Nippon Life Insurance | 98.12% |
| Aegon Life Insurance | 98.01% |
What About the Claim Settlement Ratio of Health Insurance Companies for FY 19-20?
Like their life insurance counterparts, health insurers have also posted healthy claim settlement ratios for FY 2019-20. Check their numbers in the below table.
| Health Insurance Companies | Claim Settlement Ratio |
|---|---|
| HDFC ERGO Health Insurance | 99.80% |
| Max Bupa Health Insurance | 96% |
| Care Health Insurance | 95% |
| Bajaj Allianz Health Insurance | 98% |
| ICICI Lombard Health Insurance | 96.93% |
| Tata AIG Health Insurance | 96% |
| Bharti AXA Health Insurance | 92.17% |
| Aditya Birla Health Insurance | 94% |
| Future Generali Health Insurance | 92% |
| SBI Health Insurance | 97.84% |
| Star Health Insurance | 90% |
| Royal Sundaram Health Insurance | 85% |
| Reliance Health Insurance | 100% |
| Universal Sompo Health Insurance | 93% |
| Liberty Health Insurance | 88% |
| Manipal Cigna Health Insurance | 91% |
| Cholamandalam Health Insurance | 95% |
| Oriental Health Insurance | 89% |
How to Estimate CSR?
You must know that a CSR is derived by the following formula-
CSR = Total Number of Approved Claims/Total Number of Received Claims
What is the Insurance Company Claim Settlement Ratio Consistency?
Do check the CSR of insurance companies for the last 4-5 years. That will give you a fair idea of how insurance companies have gone about settling insurance claims. An insurance company may have a superlative claim settlement record in the last year, but the same may not be the case before. So, assessing insurance companies for a longer time horizon will help you choose the best in earnest.
Where Do you Get the Claim Settlement Ratio?
The Insurance Regulatory and Development Authority of India (IRDA) publishes the insurance companies’ Claim Settlement Ratio in its annual report that you can access from its official website.
Insurance Company History
You may not rely only on CSR while choosing insurance because other than settlement, you need to see other benefits too like the sum assured, premiums payable, availability of riders at less premium, etc. And you shouldn’t compromise on benefits just because of the high CSR of the company. In case the coverage comes less, the high settlement ratio won’t come to your use!