What is the claim settlement ratio?
What is the claim settlement ratio? - 28th August 2019
Have you thought of your insurance claim getting rejected? Scary is’nt it?
Any individual taking an insurance policy would never think about their claim not being approved, but there have been numerous incidents of insurance claim rejection. Some of the reasons could be due to negligence on the part of the policyholder, but sometimes, it could also be because of choosing the wrong policy provider who looks for loopholes to avoid paying claims.
Claim settlement becomes especially important in the case of life insurance policy, where an entire family’s short-term sustenance may depend upon the claim amount.
What is Claim Settlement Ratio?
As the name suggests, the Claim Settlement Ratio is the number of claims the insurance provider has settled up until now. For instance, if the company has a claim settlement ratio of 80%, then that means that the particular company has settled 80 out of every 100 claims that were filed by policyholders.
Magma HDI has maintained an exceptional CSR of 94.1% in FY 17-18 compared to the industry average of 87.2%. With our convenient and efficient claim settlement process, we were able to ensure less than 30-day claim settlement for almost 87.17% of the total claims made in the year.
Why is the claim settlement ratio important?
It is essential to consider every aspect so you can take an informed decision before picking the right insurance provider and signing the policy papers. This becomes particularly important when taking life insurance, as, in the event of your untimely device, you will leave behind a financial security cushion for your dependents to fall back on.
The Claim Settlement Ratio is an indication of the likelihood of the policy provider to pay the claim. Companies that have a higher claim settlement ratio are automatically trusted higher as compared to companies with a lower ratio.
Few reasons for claim rejection:
- Withholding critical information at the time of taking the policy can seriously impact the likelihood of your claim getting settled as it affects the risk assessment – Can be written as tell the truth always! no matter what
- Not understanding or being unaware of the company’s terms and conditions could lead to complications or incorrect/incomplete information that could then lead to rejection. Therefore, make sure you understand the clauses and use the free-look period to ensure that you’ve made the right selection
- Faltering during the claim filing process is one of the key reasons for claim rejection. Therefore, you must thoroughly follow the process before filing your claim
Now that you know all about the Claim Settlement Ratio and how it impacts your chances of claim settlement, you can make an informed decision and choose the right provider.