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Term insurance plans are the simple type of life insurance plan that offers death benefits in case of the death of the policyholder. Since they are pure life coverages, they are the most affordable and cost-effective plans also. But before buying a term insurance plan, there are various factors that you should consider like coverage amounts, add-on riders, and the premium amount.
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In addition to this, the claim settlement ratio of the insurers is the most important factor that you should look into while buying a term plan.
Bajaj Allianz, a private life insurance company in India, is a combined collaboration between Bajaj Finserv Ltd. and BGI, Bajaj Group of India. It provides a comprehensive range of term insurance plans at a low premium rate.
Bajaj Allianz life insurance company offers an effective digital environment to its customers and the company has a PAN India presence. The claim settlement ratio of Bajaj Allianz Life Insurance is 98.48% for the financial year 2021-22 as per IRDAI Annual Report. This is considered a high CSR which means for every 100 claims received, 98 claims are settled. As per the statistics, Bajaj Allianz has been consistent with its claim settlement ratio over the last few years, indicating its quick claim settlement to its large customers.
CSR (Claim Settlement Ratio) is the percentage of claims that an insurer settles annually out of total claims. It acts as an indicator of a company’s reliability and credibility. A thumb rule says, the higher the CSR, the more reliable the insurance company is. You can find the CSR easily of different insurers on the IRDAI’s official website.
The Bajaj Allianz calculates the claim settlement ratio using a very simple and effective formula that is:
Claim Settlement Ratio = (Total number of death claims settled annually/ Total number of claims received during that FY) X 100
As we have discussed, the claim settlement ratio (CSR) is indicated as a percentage. With this, you can easily compare different insurers. Let’s discuss the example to understand how the CSR is calculated:
During the Financial Year 2021-22:
The number of death claims received by Bajaj Allianz: 200000 and,
The number of death claims settled by Bajaj Allianz: 192000
In such cases, the CSR for the insurance companies will be 96% which is 192000/200000X 100 = 96
For instance, let’s consider the claim settlement ratio for 2020-21 as per the IRDAI report:
| Bajaj Allianz Life Claim Settlement Ratio for 2020-21 | |||
| Death Claims Booked | Claim Settlement Ratio | Death Claims Paid | Death Claims pending at the last of the policy term |
| 14331 | 98.48% | 14115 | 0.03% |
It is not required to calculate the CSR value of Bajaj Allianz Life Insurance manually because there are number of easy methods to check the CSR online. Let’s discuss:
The IRDAI calculates and releases information on CSR every year. You can check the details on the IRDAI official website in the Annual report published for the FY.
Most insurers also publish their CSR on their official website. So, if you want to check the Bajaj Allianz term insurance claim settlement ratio, you can directly visit the insurer’s website.
Here is a list of what is term insurance claim settlement ratio of Bajaj life insurance company for the past 6 years:
| Bajaj Allianz Life Claim Settlement Ratio of last 6 years | ||||
| Financial Year | Total Claims | Claims Booked | Claims Paid | CSR (%) |
| 2015-16 | 17967 | 17343 | 16404 | 91.30 |
| 2016-17 | 16239 | 15816 | 14887 | 91.67 |
| 2017-18 | 14315 | 14252 | 13176 | 92.04 |
| 2018-19 | 12767 | 12517 | 12130 | 95.01 |
| 2019-20 | 12127 | 12124 | 11887 | 98.02 |
| 2020-21 | 14333 | 14331 | 14115 | 98.48 |
**Information Sourced From IRDAI
One of the main reasons to buy a Bajaj Allianz term plan is to make sure that your family members have a financial safety net in case of your absence. This protection comes into effect when the insurance company pays the death benefit to your beneficiaries/nominees. You can calculate the premiums you need to pay using the term insurance premium calculator. And in order to receive the death payout, your beneficiaries should file a claim with the insurance company.
If the insurer doesn’t have a good record of claim settlement, then it will become tough for your loved ones to receive the financial benefit from the term plan. So, it is important to compare claim settlement ratios before purchasing the Bajaj Allianz term insurance plan.
Settlement of claims on time is very important. And Bajaj Allianz has shown consistency in their claim settlement ratios from 2015 to 2021.
The CSR value changes every year.
You should check the claim settlement ratios for at least 5 years to get a good estimate of the company’s past track record
The CSR should be consistent over the past years
While checking the claim settlement ratio, the total number of claims received by the insurer should also be checked to determine the popularity and size of the company
†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
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