Despite all the major factors, claim settlement is one of the most important factors an individual should consider before getting a life insurance cover. If you are new to insurance, then this could be helpful for you as the entire idea of life insurance will be dissipated if the claim is not settled when needed. Let’s see top life insurance companies in India by claim settlement ratio.
What Does Claim Settlement Ratio Mean?
Insurance claims refer to the payment given by an insurance company to the insured or the person who claims on accidents/occurrence mentioned in the life insurance policies. The money provided as the claim amount is the return for the premiums you pay to be insured.
When it comes to claiming settlement ratio, you can easily choose an insurance company by the claim settlement ratio which refers to the total death claims provided by a company as compared to the claims.
Claim Settlement Ratio= Total number of death claims received/ total number of settlements done
Why Claim Settlement Ratio Is Important?
While you are investing in a life insurance policy, you are looking for financial security and peace of mind for you, and your loved ones. You want to be sure that their financial needs will be fulfilled, even when you are not with them. You make sure that the insurance company offers the most unique features, but what if you fail to check their claim settlement history?
Your family will struggle for their own money, in case of your unexpected demise. Here are some more reasons to give importance to claim settlement history.
To Measure Reliability
Being a reliable metric with calculative data, the claim settlement ratio confirms the reliability of an insurer and identifies if the insurance company pays the death claim amount or not. If not, then there is no sense in depending on such organizations. On the other hand, a higher claims settlement ratio assures that the claim will be settled by the insurer if everything goes as per the policy.
Financial Security for your Loved Ones
Losing a family member can be the most unbearable emotional challenge for a family. While the pain cannot be consoled with anything, the financial dependency is one such thing, a life insurance policy can help to a great extent with. A beneficiary can use the death claim amount to fulfill their financial necessities including loan, day to day expenses, medical expenses and more. Therefore, checking the claim settlement ratio of an insurer helps you secure the financial future of your loved ones.
Top 10 Life Insurance Companies in India by Claim Settlement Ratio
Here is the latest claim settlement data in percentage declared by IRDA. You can take these top life insurance companies to get claim settlement assurance.
|Insurance Company||No.of Policies||Claims Paid||Claim Settlement in %|
|Max Life Insurance||10332||10152||98.26|
|TATA AIA Life||2850||2793||98|
|ICICI Prudential Life||11459||11216||97.88|
|Bharti Axa Life||888||860||96.85|
|Aditya Birla Sunlife||5491||5292||96.38|
Types of Claims in a Life Insurance Plan
Death Claim: It involves the amount that needs to be given to the beneficiaries of the person who got the life insurance policy from an insurer.
Maturity & Survival Claim: The amount paid by the insurer on the date of maturity is called maturity claims, which may include a bonus or advance as well.
Rider Claims: Made for various riders such as accidental rider, critical illness rider, and severe cases, rider claims are for special policies that need different documentation depending on the circumstances.
Things You Will Need to Make A Claim
When it comes to making a claim, the first thing you need to do is to inform your insurer that you are aiming to make a claim and ask how the process goes further.
Here are the documents required before you claim on a life insurance plan:
Death Certificate: This is a part of the death claim process where you need to get the certificate from the funeral director. Make sure to get several copies, if you have multiple life insurance policies.
Claim Form: This is an easy process as you can either get it online or your service provider can help you with the offline form.
Documents of the Life Insurance Policy: All the documents, you got at the time of purchase will be required with original copies. Make sure you don’t send it randomly as most of the death claims get rejected due to missing registration or payment documents.
Other Documents: Apart from the above-mentioned documents, you will require your ID Proof, discharge form or a medical certificate (as proof or cause of death), postmortem report (in case of unnatural death), hospital records.
Submission Process: To get faster claim settlement, it is important that you complete all the mandatory documentation as quickly as possible, and submit the form to the insurer.
If you have chosen the right insurance company and all the documents and necessary information is submitted, then you are just a few steps away from getting your claim settlement done. However, there are cases where life insurance claims have been rejected because the claimant was not aware of the policy, and he or she could provide the required details to the company. So, take care of each step and instruction so that you can collect your money without any delay.