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Claim Settlement Ratio

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.

Advantages of Claim Settlement Ratio

The following is the list of advantages that you will avail if the company CSR is high:

  1. Smart Choice: When you know an Insurance company’s CSR, you can compare it with others and see which has the maximum ratio.
  2. Quick Settlement: A high CSR means a greater likelihood of claims getting settled by the insurer.
  3. 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.

List of Insurance Companies Claim Settlement Ratio

Let’s take a look at some of the top life and general insurance companies in India with a high CSR in the table below:

Note – The above CSR sourced from the IRDAI 2018-19 Annual Report

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!