Know what is the claim settlement ratio
If you are planning to buy life insurance, then definitely check the Claim Settlement Ratio of the company from whom you are taking the policy.
- Last Updated:February 24, 2021 1:40 PM IS
First of all, know what is the claim settlement ratio
The claim settlement ratio shows the settlement or total death claim given by a life insurance company during a financial year. This calculation is done by dividing the total claim settled in the total claim made.
Understand this type of claim settlement ratioFor example, suppose a life insurance company has 1000 death claims, and out of that company has settled 924 claims, then that company will have a claim settlement ratio of 92.4 percent and a claim rejection rate of 7.6 percent.
This time Max Life was at number one
In terms of claim settlement ratio, Max Life topped the ratio with 99.2%. HDFC Life stood at 99.07%. Of the total 24 companies, LIC has been ranked 17th this year.
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It is necessary to have the correct settlement ratio
The insurance regulator releases the claim settlement ratio data every year to help in selecting the right insurance company. Always choose an insurance company with ratios greater than 90 percent. To get the correct settlement of claim settlement, one should see the claim settlement ratio of 3 to 5 years.