When you put your hard-earned money into an insurance plan, the primary concern is to get suitable and hassle-free compensation from your insurer.
After all, the claim is the sole aim when you purchase an insurance policy. It, therefore, becomes crucial to choose an insurance company that would not just have a simple and straightforward claim settlement procedure but should also be customer-friendly so that you do not feel hassled when making a claim.
But how should you choose a company on the basis of its claim settlement? Are online customer ratings and reviews enough to come to a well-informed decision? Probably not. An insurance plan can be a long-term commitment, therefore, it is imperative that you trust a reliable and trustworthy institute when you wish to know about the claim settlement ratio of a general insurance company. The IRDAI, Insurance Regulatory and Development Authority of India, recently announced the claims settlement details of general companies for the financial year 2020-21. Make sure you check out the CSR of your short-listed insurance companies before you pick one.
Understanding Claim Settlement Ratio
The percentage of claims that an insurance company settles in a given year out of the total claims is known as the claim settlement ratio (CSR). It works as an indication of the insurer's dependability. As a thumb rule, the higher the CSR, the more dependable the insurer is. The claim settlement ratio is estimated on the basis of the total number of pending claims against the insurer in that particular financial year. This covers both fresh claims received within the same financial year and other pending claims prior to the financial year. The claim settlement ratio assists in predicting how soon one would receive the claim benefits.
What makes Claim Settlement Ratio important?
The claim settlement ratio is considered important because -
It helps in ensuring that your family is financially secure because if the claim settlement ratio is higher, that means the insurer provides an easy and hassle-free claim process.
It signifies the insurer's dependability because if the insurer's claim settlement ratio is higher, it signifies their proficiency to pay the claim amount to one's nominee.
General insurance claim settlement ratio of general insurance companies in 2022
The following table shows the latest general insurance companies for the financial year 2021-22
| Name of the General Insurance Company | Motor | Health | Total |
|---|---|---|---|
Conclusion
Thus we can conclude that while purchasing a general insurance cover, one must check and compare the insurer's claim settlement ratio. The claim settlement ratio helps in understanding how fast one's family members would be able to get the claim benefits or whether the insurance company can pay the total sum assured or not; as a higher claim settlement ratio, directly reflects the company's approach to claim settlement procedure.
