The claim ratio data from IRDAI of top 10 insurance companies is definitely something worth knowing about since it will help you make a good decision before signing on the dotted line. After all, the claim ratio has to be good and this will indicate that your claim will be settled and processed faster while indicating good and efficient internal mechanisms of the insurance company.
In the 2017-18 period, general and health insurance companies settled a total of 1.45 crore claims in health insurance space as per IRDAI reports. They also paid claim settlements worth Rs. 30244 crore and the amount per claim was Rs. 20,793 on an average. 71% of claims were settled via third party agents or TPAs and the remainder of 29% were settled in-house. 49% of insurance claims were cashless settlements and 44% were settled via reimbursements. 6% of settlements were done via both reimbursement and cashless modes. In 2017-18 insurance companies settled around 85% of total claims on books and 7% were repudiated. The remaining 8% were pending for settlement purposes as of 31st March, 2018.
Claim Settlement Ratio of top 10 Life Insurance Companies in India
IRDAI has also stated that Life Insurance Corporation of India has settled a whopping 98.04% of claims for 2017-18 (as of the 31st of March, 2018) as compared to 98.31% settled as of 31stMarch, 2017. For private insurance companies, the settlement ratio increased by 1.52% to touch 95.24% overall for FY2017-18 as compared to 93.72% in the financial year before this. The repudiation percentage reduced to 3.97% for FY2017-18 as compared to 4.85% in the earlier financial year. This came down to 0.67% for LIC in FY2017-18 as compared to the financial year earlier.
If you’re still wondering, the incurred insurance claim ratio is the ratio of net claims paid by the insurance company as compared to the net premiums that it earns. This gives you an accurate picture of how the insurance company settles claims and its track record for a particular financial year.
At Insurance Samadhan, we understand that insurance is bought for the protection of the family but sometimes the claim gets rejected due to wrong representation or technical jargon.
At Insurance Samadhan, we find solutions to any insurance-related issue that include lapsed insurance policy, assistance in case settlement, claim recovery in case of insurance fraud, assistance to NRI's in servicing their policies, and much more.
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