Having Health Insurance these days is nothing less than a necessity. An ideal Health Insurance plan keeps you prepared for untoward circumstances. It ensures that your healthcare needs are protected by a financial pool of savings during the times when you have medical emergencies knocking hard on your door.
Let us suppose, that you bought the best health insurance plan for yourself, however at the time of need, your insurance provider was unable to settle your claims on time? What will happen to your family members if they cannot use the benefits of the health insurance they own? Your entire life savings might get depleted, leaving your family in a situation of financial crisis.
To avoid such a scenario, it is recommended to always check the claim settlement ratio of an insurance provider before choosing a health insurance plan.
Now, emerges the question of what is a Claim Settlement Ratio? And, why does it hold so much importance when buying an insurance plan? Read along to find out the significance of a Claim Settlement Ratio.
The claim settlement ratio, or popularly known as a CSR, is the percentage of claims settled by an insurance company over the total number of claims filed in a given financial year. The claim settlement ratio is the most important factor that serves as a parameter of trustworthiness of a particular insurance company.
It is suggested that you should always choose an insurance organization with a greater claim settlement ratio, since the higher the ratio, the more dependable the health insurance provider is. This component is an indicator of the insurer's capacity to pay claims and aids in understanding the insurer's history and performance.
Lets further understand the process of evaluating a claim settlement ratio prior to buying a health insurance with the help of the given case study.
Mr. Sharma availed the health insurance from XYZ insurance company without checking the CSR of the same. After 4 months, Mr. Sharma’s daughter was diagnosed with a severe stomach infection. At the time of her treatment, his health insurance company was unable to settle claims on time due to its low claim settlement ability and this caused a great deal of financial strain on Mr. Sharma.
Had Mr. Sharma already considered checking the csr of his health insurance provider, he would have got to know beforehand that the company is not good in terms of settling claims.
According to the IRDAI Annual Report of 2020-21, the SBI Health Insurance Claim Settlement Ratio is 99.75. As per the IRDAI Annual Reports of previous years, SBI is able to maintain its claim settlement ratio above 95% which shows that the company is very attentive to each of its customer’s needs.
Claim Settlement of SBI Health Insurance from 2017-2021
Take a look at the below given table to assess the SBI General insurance claim settlement ratio.
Status of SBI General Insurance Claim Settlement Ratio
|Financial Year 2020-21|
|Age Analysis of Number of Claims Paid (%)||< 3 months||3 months to 6 months||6 months to <1 year||1 year to <3 year||3 years to <5 years||5 years|
There is a direct process to file SBI health insurance claims. Let's take a look at it.