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 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.

Advantages of Claim Settlement Ratio

The following is the list of advantages that you will avail if the company Claim Settlement ratio is high:

  1. 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.
  2. Quick Settlement: A high Claim Settlement Ratio means a greater likelihood of claims getting settled by the insurer.
  3. 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 NameClaim Settlement Ratio
Life Insurance Corporation (LIC)97.79%
Liberty General Insurance82%
TATA AIG General Insurance 78%
Reliance General Insurance 94%
Bajaj Allianz General Insurance85%
Bharti AXA General Insurance89%
TATA AIA Life Insurance99.07%
HDFC Life 99.04%
Max Life Insurance98.74%
Future Generali India Insurance 73%
Shriram Life Insurance85.30%
Universal Sompo General Insurance92.00%
ICICI Lombard General Insurance76%
Star Union Daichi Life Insurance96.74%
Canara HSBC OBC94.04%
Aegon Life Insurance96.45%
Magma HDI General Insurance90%
ICICI Prudential Life Insurance98.58%
Kotak Life Insurance97.40%
Sahara India Life Insurance90.16%
Aditya Birla Sun Life Insurance97.15%
Exide Life Insurance97.03%
Bajaj Allianz Life Insurance95.01%
SBI Life Insurance95.03%
Reliance Nippon Life Insurance97.71
Future Generali Life Insurance95.16%
Aviva Life Insurance96.06%
Edelweiss Tokio Life Insurance95.82%
PNB MetLife Insurance96.21%
DHFL Pramerica96.80%
Bharti Axa Life Insurance97.28%
India First Life Insurance92.82%
IDBI Federal Life Insurance95.79%

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!