Prices Increasing Soon
When you purchase a term insurance plan, you always ponder that your nominee/beneficiary should receive the sum assured after your death. This payment will make sure that your family/dependants have sufficient capital to achieve their financial objectives in the future. What if, in the case insurance company does not settle the claim of a beneficiary?
#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
Therefore, it is very important to know which insurance company has sustained a good record in claim settlement.
The Claim Settlement Ratio or CSR is the % of claims which are settled by an insurance provider versus the number of received claims. In simple words, it is an indicator that how many death claims are settled in a fiscal year by a term insurance provider. For example, if the Claim Settlement Ratio or CSR of an insurance company is 96 percent, it simply indicates that out of hundred received death claims, an insurance company has settled 96 death claims.
In this, the claim settlement ratio is 96 percent and the outstanding 4 percent claims are repudiated by the insurance provider on specific grounds. One can easily check the details for claim rejection by the company while purchasing a term insurance policy. With CSR, an individual can easily assess the customer-centricity of the term insurance company while dealing with death claims.
The claim settlement ratio is calculated as the ratio of the number of death claims settled to the claims received.
CSR = Total Claims Paid/ Total Claims Received
IRDAI i.e., Insurance Regulatory and Development Authority of India is the apex body that regulates and manages the insurance industry of India. The main purpose of IRDA is to safeguard the policyholder’s interest and ensure the insurance sector’s growth in India.
The IRDA publishes the value of claim settlement ratio of all the 24 insurance companies in India annually. The report involves all the accurate percentages, figures, number of claims made by the life assured, number of claims settled, and the number of rejected claims. On 10th February, IRDA Claim Settlement Ratio 2019-20 term insurance has published.
According to this report, Max Life Company has the maximum CSR with 99.22%, trailed by HDFC i.e., 99.07%, and Tata AIA i.e., 99.06%. As per the IRDAI 2019-20 Annual Report, among the high-ranked 10 insurance companies, 9 have a CSR above 98%. LIC, the largest life insurer has 96.69% of CSR for 2019-20.
The table illustrates the latest death CSR of ten life insurers for the year 2019-20:
|
Individual Death Claim Settlement Ratio |
|||||
|
Overall Claims |
Paid Claims |
Claims Rejected |
|||
|
Insurance company |
Number |
Number |
Total Claims (in %) |
Number |
Total Claims (in %) |
|
Max Life |
15,463 |
15,342 |
99.22 |
120 |
0.78 |
|
HDFC |
12,626 |
12,509 |
99.07 |
54 |
0.43 |
|
Tata AIA |
2,982 |
2,954 |
99.06 |
28 |
0.94 |
|
Pramerica Life |
5,69 |
560 |
98.42 |
7 |
1.23 |
|
Exide Life |
3,468 |
3,404 |
98.15 |
26 |
0.75 |
|
Canara HSBC OBC |
1,276 |
1,252 |
98.12 |
22 |
1.72 |
|
Reliance Nippon |
8,017 |
7,866 |
98.12 |
149 |
1.86 |
|
Bajaj Allianz |
12,127 |
11,887 |
98.02 |
237 |
1.95 |
|
Aegon |
351 |
344 |
98.01 |
7 |
1.99 |
|
ICICI Prudential |
11,460 |
11,212 |
97.84 |
153 |
1.34 |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
Repudiation of claims is - how many deaths claims the company found to be unacceptable and therefore did not pay the claimed amount.
It is also very important to assess the CSR of a benefit amount. You should not individually check the settled claims but while purchasing a policy, you should also see the amount of benefit settled by the company. A life insurer might have a maximum % of CSR but a low % while compensating the amount of benefit. This is especially in case the life insurer pays a maximum number of claims of low amounts of benefit and rejects policies with high benefit amounts. Therefore, while choosing an insurance provider, always ensure that the company is scoring well on both scales i.e., CSR and settlement of the benefit amount.
Purchasing a life insurance policy is a long-term decision. Not only you are required to pay a certain amount of premium to the insurer to avail of the policy benefit(s), but you also have to be sure of the claim settlement trend of the company so that it does not get rejected at the time of death claim.
CSR plays an important role to make an informed decision about a term insurance provider. Moreover, it is important to compare and buy an insurance policy. Try to select an insurer with a high Claim Settlement Ratio. CSR is a reliable metric that helps you determine if a chosen insurer is trustworthy or not so that your loved ones will not have to struggle to receive the insurance benefit.
As a buyer or policyholder, you can take an indication from the claim settlement ratio. However, the IRDA Claim Settlement Ratio 2019-20 term insurance is a helpful report to buy an insurance plan. The higher the CSR, the more reliable the company is. However, with CSR, you must also consider some other factors of the company as stated above.
Additionally, to ensure hassle-free claim settlement, you must be transparent and sincere while filling application form of the insurer or insurance product. By this, you can make sure that your loved ones do not face any difficulty while submitting a claim to the company in your absence.
Note: Check all the best term insurance plan in India.
Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
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
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2025 policybazaar.com. All Rights Reserved
+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Buying a home is a major financial commitment, often requiring
Read more
Airline pilots have one of the most demanding and high-risk
Read more
Systematic Investment Plans (SIPs) have become a popular
Read more
The HDFC Click 2 Protect Ultimate is a term insurance plan that
Read more
Doctors are the backbone of society, dedicating their lives to
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
