Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2020
    • Best Stocks 2020 by Experts
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2020-21
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Slab FY 2020-21
    • Income Tax Calculator FY 2020-21
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Ideas 2020
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2020-21
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2020
    • Best Health Insurance 2020
    • Best LIC Policy 2020
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Insurance
IRDA Claim Settlement Ratio 2018-19 – Best Life Insurance Company

IRDA Claim Settlement Ratio 2018-19 – Best Life Insurance Company

Raviraj Parekh April 26, 2020

IRDA Claim Settlement Ratio – IRDA (Insurance Regulatory Development Authority) has published Claim Settlement Ratio Report 2018-19 for the insurance companies. The report highlights important information about performance of all life insurance companies during year 2018-19. Based on IRDA report 2018-19, I have carried out analysis and shortlisted Best Life Insurance Company in India. The shortlisting of best life insurance company given here is purely based on claim settlement ratio 2018-19. Let’s look at details given in the IRDA 2018-19 annual report along with claim settlement ratio.

Claim Settlement Ratio

A claim settlement ratio (CSR) gives information about how many claim is settled by the insurance company against claim or death of the policy holder. The calculation of CSR is very easy. It is ratio of total number of claim settled against total number of claim received.

Claim Settlement Ratio = (Total claims approved and paid)/(Total claims received by the insurer)x100

The claim that are rejected or not processed by the insurance company is due to misinterpretation, fraud or pending decision by the insurance company.  Claim settlement ratio, claim rejection ratio and claim pending ratio all are different.

Do not miss below posts -
  • e-insurance account – Convert polices to e-insurance policies
  • LIC Jeevan Vaibhav Review – Think Twice
  • LIC Jeevan Tarun Policy Features, Review & Benefits

Let’s try to understand this by an example. Suppose Life Insurance Company has received 2000 death claim between 1st April 2018 and 31st March 2019. Out of these claims company cleared 1870 claims by paying money to the nominee. The company has rejected 50 claims and 80 claims are pending for decision.

  • Claim settlement Ratio = (1870/2000) x100 = 93.5%
  • Claim rejection Ratio = (50/2000) x 100 = 2.5%
  • Claim pending Ratio = (80/2000) x 100 = 4%

The claim settlement ratio is always expressed in terms of percentage. The CSR is important parameter to determine trustworthiness and reliability of the company. You should always before buying insurance product from the company. You can get information about CSR on the IRDA website annual report.

Also Read – IRDA Claim Settlement Ratio 2017-18 – 10 Best Life Insurance Company

IRDA Claim Settlement Ratio 2018-19

IRDA claim settlement ratio 2018-19 for the period from 1st April 2018 to 31st March 2019 is given below.

IRDA Claim Settlement Ratio 2018 -19

  • Green – CSR 96% to 100%
  • Yellow – CSR 90% to 96%
  • Red – Below 90%

From the above table, you must have noticed that out of 24 different life insurance company total 15 companies are in green with CSR of 96% and above, 7 companies are in yellow with settlement ratio in the range of 90% to 96%. 2 Companies are in red with a ratio below 90%.

Claim Rejection Amount of Life Insurance Companies 2018-19

In order to do further analysis I have checked claim rejection amount. LIC is topping the chart with rejection amount of 8.47 Cr. The Claim repudiated by LIC is 193.07 Cr. The second highest repudiated amount is by SBI Life. Followed by ICICI and HDFC.

Claim Rejection Amount

Best Life Insurance Company for 2019 -2020

Top 10 Best Life Insurance Company for 2019 -2020 based on claim settlement ratio is give below.

Do not miss below posts -
  • 5 Unusual Insurance Policies
  • LIC Jeevan Amar (Table 855) – New LIC Term Plan
  • e-insurance account usage and benefits
  1. Tata AIA Life
  2. HDFC Life
  3. Max Life
  4. ICICI Pru Life
  5. LIC of India
  6. Reliance Nippon
  7. Kotak Life
  8. Bharti Axa Life
  9. Aditya Birla Sunlife
  10. Exide Life

Best Life Insurance Company India

Important Points

  • Tata AIA Life is top on the list as per claim settlement ratio. Claim settlement ratio of Tata AIA this year is 99.07%. Last year also Tata AIA was in top 10 list with CSR of 98%.
  • LIC has settled highest number of claims with settlement amount of 13503.2 Cr. It is highest amount. Although CSR of LIC is 97.79% this year LIC is still popular and trustworthy brand. Last year LIC was on the second number with settlement ratio of 98.02%.
  • The detail CSR does not give any information about product type and the return given by the product.
  • This claim settlement ratio does not give insight about claim paid for types of insurance policies like term plan, endowment plan etc.
  • You cannot rely entirely on Claim Settlement Ratio for the section of the Insurance company or Insurance product.
  • Section 45 of Insurance act says that No policy of life insurance shall be called into question on any ground whatsoever after the expiry of three years from the date of the policy.

Point to remember before purchasing Insurance Policy 

  • One should buy Term plan (Pure life insurance policy) when it comes to buying an insurance.
  • The claim settlement ratio is indication with respect to insurance company performance. However, it should not be the only criteria of the selection.
  • Compare all insurance features and get complete information about insurance policy before taking purchase decision.
  • Never see insurance as investment option. If possible avoid ULIP.
  • Compare last few years CSR to get understanding about performance of the insurance company.
  • In addition to claim settlement you should look at the claim rejection and amount of rejection.
  • Do not allow any insurance agent to fill up the application form on your behalf.
  • Do not hide anything. Disclose all relevant information in the policy document.

Hope details of IRDA claim settlement ratio will be useful to you. Do share your queries in the comment section.

Prev Article
Next Article
Tags:best life insurance company Claim Settlement Ratio Claim Settlement Ratio 2018-19 IRDA Annual Report 2018-19 IRDA Claim Settlement Ratio 2018-19

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

One Response

  1. Joseph V V

    Insurance is definitely not an investment as you had mentioned.
    But what about the guaranteed return investment plans by the insurance companies. Wouldn’t they protect from the uncertainties of the investment and returns. Most of such products are also combined with protection.

    September 24, 2020

Leave a Reply

Cancel reply

IIFL Demat Account

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • Rakesh Jhunjhunwala Portfolio Holdings - January 2021
  • How to check Property Records and Land Records online in India?
  • 225 Small Business Ideas with Low Investment in 2021-22
  • 20 small manufacturing business ideas with low cost
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • 10 ways to Convert Black Money to White
  • Top 60 Manufacturing Business Ideas
  • Income Tax Calculator FY 2019-20 (AY 2020-21) - Excel Download

Subscribe to Blog via Email

Join 5,472 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |