CLAIM SETTLEMENT RATIOS IN THE COMPASS OF INSURANCE LANDSCAPE
Claim settlement ratio is the percentage of claims settled by an insurance company against the total number of claims received.
It is an important factor to consider while choosing an insurance company as it reflects the company's ability to settle claims.
The claim settlement ratio of an insurance company is influenced by various factors such as the type of insurance, the age of the company, and the number of claims received.
As per the IRDAI, the claim settlement ratio of all insurance companies in India should be above 50%.
In 2019-20, the claim settlement ratio of the life insurance industry in India was 95.02% and that of the general insurance industry was 85.01%.
Among the top life insurance companies in India, LIC had the highest claim settlement ratio of 97.79% followed by Max Life Insurance with 99.22%.