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Claim settlement ratio of insurance companies
Jan 17, 2014


Life insurance is generally bought to take care of the financial needs of your dependents. Hence, it is important to choose your insurer with utmost care. However, while choosing any life insurer, most people focus on the premium outgo and expected return associated with that policy. This could be a grave mistake. Remember, insurance is not an investment. It is a life protection tool. Hence, while choosing any insurer, assessing the claim settlement record is of critical importance. Claim settlements ratio indicates the proportion of claims that have been honoured out of total claims that are outstanding. Higher claim settlements ratio indicates that a life insurance company is making the payments when they fall due, in this case an untimely death.

Today's chart shows the claim settlement ratio of life insurance companies. LIC leads the list with highest ratio of 97.7% followed by others. It is interesting to note that private life insurers have claim settlement record of 88.6%. This indicates that about 11.4% claims on an average get rejected by the private life insurance companies.

Most companies cite incomplete documentation or concealment of facts as a reason for rejecting claims. Hence, while buying a life insurance it is of utmost importance that you furnish accurate information and ensure that all paper work is into place. And most importantly, while choosing any life insurer, one must pay attention to the claim settlements record and not get swayed away by higher returns.

Data source: Economic Times & IRDA

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20 Responses to "Claim settlement ratio of insurance companies"

Aakash Thakur

Sep 10, 2015

How much time is mentioned in IRDA guidelines for any insurance claim settlement ? Specially in Mediclaim.

Like (4)

Ajay

May 27, 2015

Please provide me claim settlement ration of Non-Life Insurance Comapnies

Like (6)

Sandeep

May 6, 2015

First of all I am not too sure on reliability of the % of claim settlement mentioned for each insurance company.

Secondly it is very important to be transparent while buying the insurance so that there is no scope given for insurance company to reject the claim.

Thirdly, insurance company should declare the reasons of rejecting those remaining cases so that customer buying fresh insurance or who have already bought the insurance can learn lessons from the same and can revise the disclosures based on the same to insurance company.

Like (2)

shivkumar

Apr 14, 2015

The fact is that most of the insurances are taken by the false promises of the agents. Now a days bank staff are involved in canvasing.The account holder visiting a bank for some purpose is followed up by these bank staffs. This is very much true in the case of NRIs who come for holidays. They are forced to start some schemes with out giving the full information

Like (25)

chirag

Mar 14, 2015

its true, tata aig is making us run to get amount.

Like (32)

Guru

Feb 10, 2015

www.policybazaar.com/life-insurance/term-insurance/articles/best-term-insurance-plans-in-india-2014/

Like (70)

Atchuta

Feb 5, 2015

I Want to know claim settlement ratio of all health insurance

Like (64)

ashish jadhav

Feb 1, 2015

dear team
my self ashish jadhav just i want to now the claim settlement of all the companies pls provide me all the details of the company

Like (53)

Nagavendra kumar

Jan 20, 2015

I want to know the claim settlement ratio of all insurance companies. Which is the best.

Like (61)

umesh n

Jan 11, 2015

How is Exide life insurance performing. What is their claim settlement ratio.

Like (56)
Equitymaster requests your view! Post a comment on "Claim settlement ratio of insurance companies". Click here!

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