Term of the week: Claim settlement ratio

 

Claim settlement ratio is a metric that measures the proportion of the claims settled against the total number of claims received by the insurer.

Since you pay your premiums regularly to ensure that the claims are settled at the time of need, it is advisable to go with an insurer with a high claim settlement record.

You can check the claim settlement ratio of all the insurance companies from IRDAI — the insurance regulator’s website where this information is published every year. For instance, as per the latest data from the website, LIC has a claim settlement ratio of 98.04 per cent while other players — SBI Life and ICICI Pru Life — have a claim settlement ratio of 96.76 and 97.88 per cent respectively.

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