Term Insurance 580 views February 14, 2019

Best Online Term Insurance Plans With Their Claim Settlement Ratio (C.S.R.)

Not all insurance companies promise the same quantum of term insurance benefits at similar premium rates. While most people resort to term insurance comparison based on premium rates, it is important that they compare the claim settlement ratios of insurers to gauge their credibility and, thus, judge the ease of filing and receiving the claim amount. Higher claim settlement ratio depicts the ease of death settlements made by insurance companies to those nominated by their insured policyholders.

Best Top Online Term Insurance Policy Plan With Their Claim Settlement Ratio

There is no denying the fact that the concept of term insurance is finding favor with an increasing number of people looking to protect and preserve the financial integrity of their loved ones in the face of unforeseen circumstances like death. However, when it comes to choosing the best term insurance plan in tandem with the needs of their loved ones, most Indians are dismissive about certain factors that indicate the extent of the reliability of the term policy they opt for. The Claim Settlement Record of the various insurers as a significant deciding element tends to be largely overlooked by potential customers. It is important that claim settlement ratios corresponding to the various term insurance plans in India must be considered as it indicates the number of death claims that have been settled by any insurance company in any given fiscal year.

Claim Settlement Ratio: Total number of claims paid (to nominees or dependents) / Total number of claims received by the company on all life insurance policies

How does Claim Settlement Ratio help?

The promise of paying death benefits to the dependents in return of some amount of premium paid regularly while the policy is in force lures people to pay for term insurance plans. Term life insurance may be viewed as a contract which ensures that in case of the sudden death of the insured, the insurance company is required to pay the amount of predetermined claim to the nominee(s) of the insured in return for the premiums having been paid by the insured. This means that the insurance company claiming a higher claim settlement ratio has a greater probability of settling its insurance claims.

Easy and timely settlement of every valid claim is a prerequisite for every term insurance company to grow in terms of reputation and market share. Moreover, it is important that the claim settlement ratio is consistent across every financial year. If you are looking to choose an apt term plan insurance, you must be well aware of the Claim Settlement Ratios published by the Insurance Regulatory Development Authority of India (IRDAI) on its site each year.

Claim Settlement Ratio of Top Insurance Companies

The IRDA in its Claim Settlement Report 2016-17 has listed the claim settlement ratios of different insurance companies to enable term insurance comparison. The details shared in the following table lists the claim settlement ratios, till March 31, 2017, in descending order.

Insurance CompanyNumber of Death Claims ReceivedNumber of Death Claims PaidClaim Settlement RatioClaims Pending in Percentage
LIC755, 901742,24398.31%0.50%
Max Life9,2238,80497.81%0.10%
HDFC Standard12,18911,03197.62%2.30%
Aegon Life46041397.11%0.20%
SBI Life14,87613,30396.69%3.20%

Most people cavalier the concept of term insurance or any kind of life insurance out of a feeling of dread against the jargons that insurance agents use. In addition, the numerous evaluation measures make it difficult for prospective customers to choose the term plan best suited to their needs. To enable people to make their choice of term plan insurance among the multitude of term insurance plans in India, IRDA has mandated simple calculation techniques to arrive at the claim settlement ratio of each insurer. With those new to the concept of term insurance or are buying a term policy for the first time, term insurance comparison is much easier with claim settlement ratio.

Choosing term life insurance over others

When it comes to choosing insurance policies, most people prefer a term plan insurance over others. With features like affordable premiums, assured term insurance benefits or death benefits and hassle-free procedures, term insurance comes first in mind while planning for the long-term security of one’s loved ones. The insurance market is growing with more insurance players showing interest in selling insurance products. With internet pervading the lives of both young and old, irrespective of stature and economic status, it is quite likely that the concept of term insurance will be included as a necessary savings tool and protection instrument by each family.