While trying to cover life risk by taking term insurance, most of the individuals opt for insurers seeking low premiums. While this might be one of the parameters for shortlisting the insurance provider, this cannot be the only parameter.
|Total Number of Claims||100|
|Number of claims accepted by the Insurance Company||98|
|Number of claims rejected by the Insurance Company||2|
|Claim Settlement Ratio||98%|
One of the most important parameters to check is the Claim Settlement Ratio. Lets understand how this ratio is calculated with an example:
Higher the claim ratio, the better. Next question would be where to find this ratio?
Most of the Insurance providers have started publishing this information in their website or insurance aggregators display the same in their websites as well. But the most trusted source would be the annual reports published by IRDA.
In the next blog, we will explain other parameters within the IRDA annual report which needs to be considered along with settlement ratio.
Till then, stay safe and help us in spreading financial literacy by liking and sharing this post and page.