HDFC ERGO Health Insurance Incurred Claim Ratio

HDFC ERGO Health Insurance's incurred claim ratio is 79.04% for the financial year 2023. It signifies that insured members are receiving their policy benefits fully. It is always advised to check the incurred claim ratio of a health insurance company before investing in their insurance policies. The incurred claim ratio provides a clear picture of how frequently a company settles claims and its overall performance with customers.

We have covered more about the ICR of HDFC ERGO Health Insurance. Read further to learn about the ICR calculation formula, why it is a crucial factor to consider before buying a policy, and more.

What is HDFC ERGO Health Insurance Incurred Claim Ratio?

The incurred claim ratio represents the ratio of the total claims paid to policyholders by a health insurer to the net premiums collected by the insurer in a financial year.

The incurred claim ratio of HDFC ERGO Health Insurance is 79.04%, according to the ICR reports of IRDAI for the financial year 2023.

How Can I Calculate the Incurred Claim Ratio?

Here is the formula for calculating the incurred claim ratio of an insurance company:

ICR = (Net claims paid) / (Net premiums collected) * 100

Let us understand this with an example:

The HDFC ERGO incurred claim ratio is 79.04%. This means HDFC ERGO Health Insurance has paid 79.04 rupees in claims for every 100 rupees collected as premiums from policyholders.

How to Choose the Best Health Insurance Based on ICR?

Read further to learn about what is considered a good percentage for the incurred claim ratio:

Percentage of ICR and Specifications

• Incurred claim ratio more than 100%: This indicates that the insurance company has paid more in claims to policyholders than it received in premiums for the financial year. While not profitable for the insurer, it is beneficial for insured individuals.
• Incurred claim ratio between 50% to 100%: This range is considered favorable for both policyholders and the insurer, often signifying the affordability of health insurance policies.
• Incurred claim ratio less than 50%: This is not favorable for insured individuals, as it suggests a lower likelihood of claims being settled. However, it is beneficial for insurance companies as they have paid less in claims than they collected in premiums.

Wrapping It Up

Health coverage benefits, sum insured limits, inclusions, exclusions, waiting periods, claim settlement ratio, and other factors should be considered when buying a health insurance policy. However, many of us overlook checking a company's incurred claim ratio, which is a crucial oversight. It is always recommended to check the ICR of any insurer before purchasing a policy. HDFC ERGO Health Insurance Company's ICR was 79.04% in the financial year 2023, which reflects the company's credibility to its policyholders.

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