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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 Claim Settlement Ratio is the percentage of the total number of paid claims out of the received number of claims in a financial year. So if the claim settlement ratio (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
Advantages of Claim Settlement Ratio
The following is the list of advantages that you will avail if the company Claim Settlement ratio is high:
- Smart Choice: When you know an Insurance company’s Claim Settlement Ratio, you can compare it with others and see which has the maximum ratio.
- Quick Settlement: A high Claim Settlement Ratio means a greater likelihood of claims getting settled by the insurer.
- Helps in Emergency: For Health Insurance, if a company’s Claim Settlement Ratio 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 claim settlement ratio in the table below:
| Company Name | Claim Settlement Ratio |
|---|---|
| Life Insurance Corporation (LIC) | 97.79% |
| Liberty General Insurance | 82% |
| TATA AIG General Insurance | 78% |
| Reliance General Insurance | 94% |
| Bajaj Allianz General Insurance | 85% |
| Bharti AXA General Insurance | 89% |
| TATA AIA Life Insurance | 99.07% |
| HDFC Life | 99.04% |
| Max Life Insurance | 98.74% |
| Future Generali India Insurance | 73% |
| Shriram Life Insurance | 85.30% |
| Universal Sompo General Insurance | 92.00% |
| ICICI Lombard General Insurance | 76% |
| Star Union Daichi Life Insurance | 96.74% |
| Canara HSBC OBC | 94.04% |
| Aegon Life Insurance | 96.45% |
| Magma HDI General Insurance | 90% |
| ICICI Prudential Life Insurance | 98.58% |
| Kotak Life Insurance | 97.40% |
| Sahara India Life Insurance | 90.16% |
| Aditya Birla Sun Life Insurance | 97.15% |
| Exide Life Insurance | 97.03% |
| Bajaj Allianz Life Insurance | 95.01% |
| SBI Life Insurance | 95.03% |
| Reliance Nippon Life Insurance | 97.71 |
| Future Generali Life Insurance | 95.16% |
| Aviva Life Insurance | 96.06% |
| Edelweiss Tokio Life Insurance | 95.82% |
| PNB MetLife Insurance | 96.21% |
| DHFL Pramerica | 96.80% |
| Bharti Axa Life Insurance | 97.28% |
| India First Life Insurance | 92.82% |
| IDBI Federal Life Insurance | 95.79% |
Note – The above claim settlement ratio sourced from the IRDAI 2018-19 Annual Report
How to Estimate Claim Settlement Ratio?
You must know that a claim settlement ratio 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 claim settlement ratio 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 Claim Settlement Ratio 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 Claim Settlement Ratio of the company. In case the coverage comes less, the high settlement ratio won’t come to your use!