Important: Basic things to know about claim settlement ratioThe insurance experts always advise to check the claim settlement ratio of an insurance company before subscribing to a policy. So, we must know some basic details about claim settlement ratio. It is an important criterion for selecting insurance policy of a particular insurance company. Claim settlement ratio is calculated as the number of insurance claims settled by a particular insurance company as a percentage of total number of claims received over a period of time. Generally, claim settlement ratio is calculated every year. The higher the claim settlement ratio of a particular insurance company, the greater is the chance of a claim being settled by it. It must be remembered that chosing a policy with lower claim settlement ratio is not prudent, even if the policy has comparatively low premium. This is because low claim settlement ratio defeats the very purpose of taking an insurance.
The insurance companies provide data about claim settlement to Insurance Regulatory and Development Authority of India (IRDAI). IRDAI publishes the figures regularly so that the people planning to take insurance can check the data.