claim settlement ratio 176 views October 19, 2020

Claim Settlement Ratio HDFC Life

HDFC Life is one of the leading life insurance companies in India. It offers a wide range of individual and group insurance to its customers that give benefits in different life stages. HDFC Life Insurance Company Limited is a joint venture of HDFC Ltd. and Standard Life Aberdeen. Established in 2,000, the leading life insurance provider is also known for having a high claim settlement ratio. The company has settled an impressive number of life insurance claims submitted by the customers in recent years. If you want to check the exact HDFC claim settlement ratio, read this page for the same.

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What is Claim Settlement Ratio HDFC Life for 2018-19

As per the data available on IRDAI, the Claim Settlement Ratio of HDFC Life is 99.04%, which means the company has settled the highest number of claims in the year 2018-19.

You can calculate the CSR by using the below-mentioned formula:-

Claim settlement ratio = (Number of claims settled/Number of claims received) x 100

As mentioned in the article, there are some important factors other than claim settlement ratio that also count equally while deciding the right insurance plan. These are the premiums that the policyholder pays, any add-on features, extra coverage fees, etc. An HDFC Life Insurance plan benefits you as per your requirements, income, age, etc.

What Do You Understand by the Claim Settlement Ratio?

The company’s claim settlement ratio is an indication of the total number of death claims which are approved by the insurer. This ratio can be determined by dividing the total number of claims approved in response to the number of claims received by the insurance company. For example, if HDFC Life received 100 death claims in a financial year and settled 96 of them, the claim settlement ratio would be 96%.

What is the Quarterly Solvency Ratio of HDFC Life?

This solvency ratio defines how good or bad your insurance company’s financial situation is. As per the IRDAI guidelines, all insurance companies are required to maintain a solvency ratio of 150% to minimize bankruptcy risk.

This ratio helps you identify whether the company has enough buffer to settle the claims in extreme situations or not.

An insurance company solvency ratio is calculated by dividing the amount of Available Solvency Margin (ASM) by the amount of Required Solvency Margin (RSM). What are ASM and RSM? The ASM is the value of the company’s assets over liabilities, while the RSM is the net premium as defined in the IRDAI guidelines.

The higher the solvency ratio, the greater the chances of your claims getting paid, which means the claim settlement ratio of the company would be high. Let’s check out the table below and find the HDFC Life solvency ratio for the year 2018-19.

DateQuarterly Solvency Ratio
30.06.2018 1.97
30.09.20181.93
31.12.20181.91
31.03.20191.88

Claim Process in HDFC Life

To get your policy claim from HDFC Life, you need to follow the below steps:-

  1. Visit HDFC Life official website
  2. Log in and click on the ‘Claim’ button
  3. Verify policy documents
  4. Submit the life assured details
  5. Submit the nominee details

Fill the following information in the claim form

  1. Policy number
  2. Date of birth
  3. Date of death
  4. Mobile number/PAN number
  5. Enter the claimant mobile number and submit the form

To track the status of your policy claim, the concerned nominee just needs to log in to the HDFC Life account and do the following.

  1. Enter the Claim ID
  2. Policy Number
  3. Claimant’s mobile number
  4. Date of birth of the life assured
  5. Click on the ‘Track’ button

What are the Reasons for a Claim Rejection?

Your HDFC Life policy claim would be rejected in the following cases –

  1. Incorrect documentation
  2. Misleading information
  3. Submission of claims that are not acceptable
  4. Fraud medical reports
  5. Absence of nominee (if the policyholder dies)
  6. Non-disclosure with the company

Note:- The claim settlement ratio – HDFC Life represented in this article is published in the IRDAI’s annual report.

Reasons to Check the HDFC Life Claim Settlement Ratio

Most of you check the policy features and benefits, financial strength, ratings, etc. However, you may not have checked the claim settlement ratio of HDFC Life. Below are the two major reasons to check the claim settlement ratio while buying insurance.

  1. Reliable Metric:- The claim settlement ratio measures the insurer’s reliability, which helps identify whether or not the insurance provider pays the benefit amount on time. If it fails to settle claims, this will defeat the entire purpose of investing in a life insurance policy. A higher claim settlement ratio shows a greater likelihood of your future claim getting settled by the insurer.
  2. Financially Secured:- Life insurance policies are purchased based on the premium outgo and their expected return. Your nominee will get the sum assured if you die during the policy period, or you can get the sum assured when the policy matures in the case of traditional insurance plans. If you know the claim settlement ratio of HDFC Life, it gives an assurance about your dependent’s financial future.

Hence, it is necessary to check the claim settlement ratio before purchasing a life insurance plan from HDFC Life. To do this, you just need to visit the website of the Insurance Regulatory and Development Authority of India (IRDA), the official agency that regulates the insurance industry in India.

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