Choose an insurance company that has the best claim settlement ratio.
You can check the credibility of your insurance company through the claim settlement ratio.
A claim settlement ratio of more than 97 per cent is considered safe.
New Delhi. While taking a life insurance policy, there are many people who do not know about the claim settlement ratio or CSR of the life insurance company. However, it is very important for the policyholders to know this. This shows the percentage up to which the insurance company has settled the claim.
Actually, the claim settlement ratio or CSR is known from the total claim settled or given by a life insurance company during a financial year. To calculate this, the total claim made is divided by the total claim settled.
For example, if a life insurance company has 100 death claims and out of them, that company has settled 93 claims, then that company will have a claim settlement ratio of 90 per cent and claim rejection rate of 10 per cent.
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Choose a company with more than 97 percent CSR
Before buying a policy, choose an insurance company that has the best claim settlement ratio. Before choosing the right insurance company, check their CSR. The insurance regulator releases the claim settlement ratio data every year. Higher the claim settlement ratio, better will be the claim record of the company. A claim settlement ratio of more than 97 per cent is considered safe. You can check the credibility of your insurance company through the claim settlement ratio.
FIRST PUBLISHED : August 06, 2022, 07:40 IST