Prices Increasing Soon
Life insurance is crucial for ensuring that your family is financially protected in case of your death. You must select a coverage plan and pay regular premiums for the death benefit to remain active. However, it is important to be well-informed while selecting the right policy. One such metric in deciding the right policy for you is the Claim Settlement Ratio (CSR). This article explores CSR in depth:
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
Claim Settlement Ratio, or CSR in short, refers to the number of claims paid against the number of claims filed- the higher the ratio, the better it is for you. You must seek for those policies with a higher CSR to ensure that your claim is settled in case of your death with ease.
Every Year, the Insurance Regulatory and Development Authority (IRDAI) releases each insurer's Claim settlement Ratio. Every policy seeker must review this list to select the right policy for them. It is suggested that a customer buy a life insurance policy from an insurer with over 95% CSR for five consecutive years.
The claim settlement ratio is important for ensuring your family's financial security. The primary purpose of life insurance is to protect against unforeseen events, but this goal is undermined if the insurer does not meet its obligations. On the other hand, a high claim settlement ratio assures that most claims are processed smoothly and transparently, which means your loved ones are more likely to receive the promised benefits without issues. Furthermore, a consistently high claim settlement ratio over time demonstrates the insurer’s reliability and commitment to paying out claims, reducing the risk of failing to honour their compensation obligations.
Term Plans
Compare Insurers: When evaluating different insurance providers, compare their CSR figures. A higher CSR generally indicates a better track record of settling claims.
Consider Historical Data: Look at the insurer's CSR over several years rather than just the most recent year.A consistently high CSR is always a good sign.
Read Reviews and Reports: Consult independent reviews, customer feedback, and insurance reports to gain insights into the insurer's claim settlement practices.
The claim settlement ratio, as mentioned before, is the number of claims paid against the number of claims received. If an insurance company gets 5000 claims in a year and pays 4750, their CSR will be (4750/5000)*100=95%.
Secure Your Family Future Today
₹1 CRORE
Term Plan Starting @
Get an online discount of upto 10%#
Compare 40+ plans from 15 Insurers
The Claim settlement ratio is the approximate number of claims paid against claims filled. It is an estimated value and not an exact number for each policy type. Furthermore, CSR is represented as a percentage and not an exact value. This can provide misleading information. For example, if an insurance receives 1000 claims in a year and only rejects 100 their CSR is 90%. However, if an Insurance Company receives 10000 claims the following year and rejects only 500, their CSR will be 95% for the year. This increase in CSR provides a misleading picture since the company has rejected more claims in the latter year.
Claim Settlement Ratio (CSR) is a key factor in deciding life insurance providers, reflecting their effectiveness in settling claims. A higher CSR indicates a greater likelihood that your beneficiaries will receive the promised benefits without complications. However, it’s important to use CSR alongside other criteria, such as the insurer’s financial stability and policy features, to make a well-rounded decision. By considering CSR and conducting thorough research, you can ensure you select the right life insurance policy that offers peace of mind for you and financial security for your loved ones.
The claim settlement process involves the following steps:
1.Intimating the Claim
2.Submitting the required documents
3.Claim verification by insurer
4.Settlement decision and communication
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Life insurance fraud is a financial crime that can be committed
Read more
High net worth individuals often opt for life insurance plans to
Read more
“Policy Bazaar insurance clarified the term policy for me, so
Read more
“I recently bought an HDFC term plan and it is the best
Read more
The life insurance policy in India is a type of life insurance
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
