The claim settlement ratio is considered to be one of the most important factors to be taken into consideration by the people at the time of indulging in the purchasing decision of a life insurance plan. It is very much important for the people to keep their best interest in mind so that key facts about the claims can be found in there is no hassle throughout the process.
The claim settlement ratio or the CSR is considered to be the percentage of claims that the insurance provider has been settling into a particular year out of the total claims received by them. This is considered to be the best possible indicator of credibility and as a very basic rule higher will be the ratio more the reliability of the insurer will be. One can very easily depend upon this particular ratio for different kinds of companies on the official website of the IRDAI so that credibility and reliability can be easily insured at the time of purchasing the insurance.
Why this particular ratio is very much important?
Following are some of the most important points to be taken into consideration that very well helps in justification of the importance of claim settlement ratio for health insurance:
- It will help in ensuring the financial security of the family because the entire motive of purchasing life insurance is to ensure financial protection against unforeseen circumstances. Hence, if this particular point will not be considered then the whole purpose will be defeated.
- If the insurer owners have most of the claims in the family will be more likely to have a simple and transparent hassle-free claiming process which will make sure that one will be assured that they will be facing no problem to get the sum assured.
- This particular issue is also very much successful in terms of indicating the reliability of the insurer and will further make sure that they will be having the right kind of capacity and ability to pay the sum assured to the nominees and will help in maintaining a consistently high CSR over time. This will further make sure that there will be no default in the compensation commitments on the behalf of companies which will further give a great boost to the trust factor of the individuals.
The calculation of this ratio has been explained as follows:
CSR is equal to the total number of claims that have been settled in a year/total number of claims into a year multiplied by a hundred. As a very basic example suppose a company Has settled 9500 claims out of 10,000 claims for the last year then the CSR will be 9500÷10,000 into hundred which will come out to be 95%. This particular ratio has been computed every year depending upon the claims settlement procedure and it is very much important for the people to confirm that the company with which they are going has a consistent ratio. These kinds of ratios are published into the annual report of the IRDAI which will further make sure that everything will be very much transparent and investors will never have to face any kind of problem throughout the process because they will be having proper access to the issues.
- Apart from all the above-mentioned steps, it is very much important for the people to ensure that they go with that particular company which comes with a very simple claim process based upon very easy reporting because claims can be reported only different kinds of branches, helpline numbers or through different kinds of email portals as well.
- It is important to depend upon quick processing because this is considered to be the driving of philosophy of the first time right and the branch offices will help in connecting the central claims with the help of a hotline.
- One should also depend upon the first settlement where the relevant documents will be received and the claim will be assessed as well as approved perfectly.
- It is very important to check out that the claim process must be very much quick as well as transparent so that investors never face any kind of problem and they can fulfil their overall purposes very easily.
- It is important to check out that clamping ability rating should be very much good because this is another rating provided by the authorities in this particular area and checking out this rating is vital.
Hence, depending upon Care insurance in this particular sector is a very good idea for the people so that they can end up making the most prudent decisions associated with the choice of life insurance without any kind of hassle and further help in making sure that overall goals of fulfilling the purposes will be very effectively achieved.