The most fundamental thing you should look into before purchasing, renewing, or porting an insurance policy is how the insurer resolves claims, among many other things. By looking at its claim settlement track record, you can get an idea of how many claims a public or health insurance company pays out during a fiscal year as a percentage of the total claims it receives.
The claims payment information for general and health insurance companies for the fiscal year 2021–2022 has been made public by the Insurance Regulatory and Development Authority of India (IRDAI). The percentage of claims paid by general insurance companies includes other insurance verticals and health insurance claims, such as motor, fire, marine, and other insurance. Although IRDAI’s claims settlement data includes information about claims paid over time, the policyholder is more concerned with whether or not the claim was settled within the first three months. #
What Is The Claim Settlement Ratio?
According to experts, the claim settlement ratio indicates the insurance company’s overall capacity for managing risk. The ratio shows how many claims the insurer paid out of every 100 claims the insurance company received. Therefore, if an insurance provider has a 95 per cent settlement ratio, it means that out of 100 claims, 95 have been paid. Additionally, it suggests that the business should have covered the remaining 5 claims. *
Therefore, before choosing an insurer, always check each claim’s most recent claim settlement ratio. This is especially important if you purchase a new insurance policy or port your current general insurance policy to a new insurer.
| Insurer | Claim Paid in (%) |
| Less than 3 months | |
| Acko General Insurance Ltd. | 97.20 |
| Bajaj Allianz General Insurance Co. Ltd. | 96.59 |
| Cholamandalam MS General Insurance Co. Ltd. | 93.23 |
| Edelweiss General Insurance Co. Ltd. | 97.26 |
| Future Generali India Insurance C. Ltd. | 96.01 |
| Go Digit General Insurance Ltd. | 96.09 |
| HDFC ERGO General Insurance Co. Ltd.$ | 98.49 |
| ICICI Lombard General Insurance Co. Ltd. | 97.07 |
| IFFCO Tokio General Insurance Co. Ltd. | 89.38 |
| Kotak Mahindra General Insurance Co. Ltd. | 96.90 |
| Liberty General Insurance Ltd. | 97.30 |
| Magma HDI General Insurance Co. Ltd. | 92.34 |
| Navi General Insurance Ltd. | 99.99 |
| Raheja QBE General Insurance Co. Ltd. | 93.30 |
| Reliance General Insurance Co. Ltd. | 98.65 |
| Royal Sundaram General Insurance Co. Ltd. | 95.95 |
| SBI General Insurance Co. Ltd. | 95.04 |
| Shriram General Insurance Co. Ltd. | 85.23 |
| Tata AIG General Insurance Co. Ltd. | 93.55 |
| Universal Sompo General Insurance Co. Ltd. | 95.77 |
Check The Speed At Which Your Insurance Provider Is Handling Claims
As previously mentioned, in addition to the settlement ratio, you should also look at how quickly your insurance provider handles your claims. The insurance regulator has mentioned different claim settlement times for general and health insurance companies, such as less than three months, three months to six months, etc. The most important information is for a time frame of under three months. The company settles more claims in the shortest time if your insurance provider has the highest health claim settlement ratio over the first three months.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
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