It’s the percentage of claims settled by an insurance company in one yr. out of the total no. of claims.
It is an insurance company’s credibility indicator that defines how trustworthy a company is.
As a rule of thumb, higher the claim settlement ratio, higher the reliability of the insurance company.
It’s a procedure where you ask the insurance company to pay for the damages incurred due to an accident, theft etc. involving your car.
The overall claim amount is decided keeping the car’s Insured Declared Value in mind along with the policy type that you buy.
There are two ways to settle your insurance claim:
In case you repair the car by taking it to a workshop or garage which falls outside the list of authorised network garages of the insurer, you’ll have to conduct a reimbursement claim process. In such cases, you pay the repairing cost first & then ask for the insurance company to reimburse the same.
In case you repair the car at a garage or workshop which falls in the list of your insurance company’s authorized garages, you don’t have to pay anything & most of the repair bill amount is taken care of by the insurance company. This happens only if the claim is valid.
Here is a list of the car insurance companies with best claim settlement ratio in India for 2025.
| Car Insurance Company | Incurred Claim Ratio 2021-22 |
|---|---|
| IFFCO Tokio | 84.12% |
| Royal Sundaram | 85.76% |
| The Oriental | 97.95% |
| HDFC Ergo | 74.66% |
| Universal Sompo | 91.32% |
| Tata AIG | 74.51% |
| The New India Insurance | 91.00% |
| SBI General | 93.58% |
| Bajaj Allianz | 68.53% |
| Future Generali | 62.43% |
| ICICI Lombard | 70.88% |
| Liberty | 62.84% |
| Cholamandalam MS | 65.05% |
| National Insurance | 90.68% |
| Edelweiss | 84.61% |
| Reliance | 75.57% |
| Acko | 86.87% |
| United India Insurance | 98.90% |
| Kotak Mahindra | 82.67% |
| Go Digit | 79.54% |
| Magma HDI | 69.37% |
| Shriram | 72.97% |
| Navi | 117.97% |
IFFCO Tokio General Insurance has the highest car insurance claim settlement ratio of 95.30%
Claim settlement ratio of above 80% is considered to be a good ratio as it indicates the insurance company’s willingness and efficiency to resolve claims.
IFFCO Tokio general insurance has the best claim settlement ratio followed by Royal Sundaram, The Oriental, HDFC ERGO, etc.
Claim settlement ratio is calculated based on the total number of claims settled by the insurance company divided by the total number of claims received.
It is the percentage of claims an insurance provider settles in a year out of the total number of claims received.
Claim settlement ratio is important because the higher the ratio, the more reliable the insurance company is. Also, this ratio acts as an indicator of an insurance company’s credibility.
Claim settlement is of two types i.e. reimbursement claim and cashless claim. If you are getting your car repaired at a network garage of the insurance company then you can file a cashless claim. However, if the car is being repaired at any other garage, then you will have to file for a reimbursement claim which requires you to submit the repair bills to the insurance company post which the claim will be settled.
Cashless car insurance claims do not take any time, whereas reimbursement car insurance claims are usually settled within 7 working days.
There is no restriction on the number of claims you can file in one policy year. You can file as many claims as you want up to the insured declared value amount.
