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Claim settlement ratio

Tuesday, April 19, 2016 by Indian Real Estate News

 
 


1 An important yardstick for selecting an insurance policy is the insurance company's claim settlement ratio.

2 It is calculated as the number of insurance claims settled by an insurance company as a percentage of the number of claims received over a period of time.

3 The higher the claim settlement ratio of a particular company, the greater are the chances of a claim being settled by it.

4 Choosing a policy with a lower claim settlement ratio, even if it has a low premium, may not be wise, as this defeats the purpose of having an insurance cover.

5 Insurers report data about the claims and settlement to Irdai, which publishes it on a regular basis, to be used by investors.

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