One of the most significant criteria to consider when buying a term insurance plan is the claim settlement ratio. The term insurance claim settlement ratio is calculated yearly, on the basis of insurance claims setteled against the insurance claims recieved by a given company. The claim settlement ratio is always represented as a percentage, it is a standard format which was proposed by the IRDAI (Insurance Regulatory Development Authority of India). The information is published on an annual basis. The entire purpose of purchasing life insurance is to provide financial security in adverse situations. However, if the insurance provider refuses to pay your claim or is unable to do so at the right time, the entire goal of purchasing the term plan goes to vain.
The following factors will also impact the insurer’s Claim Settlement Ratio of the company, as they slow down the settlement process, which affects the CSR of the insurer.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
Misrepresenting data leads to the cancellation of your policy or the rejection of the claims.
The claim settlement ratio of term insurance is calculated by dividing the total number of claims settled by the total number of death claimed.
Claim settlement ratio (CSR) is one of the most important factors one should consider when buying a policy as it shows the credibility and integrity of the insurance company.
Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.