everything-about-claim-settlement-ratio

What is Claim Settlement Ratio (CSR) in Insurance?

The Claim Settlement Ratio is key to choosing the right insurer and securing your family’s financial future.

Written by : Knowledge Center Team

2025-11-08

9914 Views

8 minutes read

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

The Claim Settlement Ratio (CSR) is a number indicating the percentage of life insurance claims the insurer has settled during the previous financial year. CSR is estimated based on the total number of claims pending with the insurer in that financial year. This includes pending insurance claims from the previous financial year and new claims received in the same financial year.

The claim settlement ratio is a good indicator of how quickly your family will receive the policy benefit amount in case of an unfortunate event. This is why it is an important metric you should check while buying life insurance.

Unforeseen circumstances can often have a grave impact on the financial health of a person or even an entire family. That is why the importance of insurance cannot be overstated. In the event of the demise of the financial provider, life insurance policies offer their dependents a much-needed financial safety net.

This is where an important feature known as the Claim Settlement Ratio comes into play. It is an objective, numerical figure that can help you make the crucial decision of which life insurer you should opt for.

Key Takeaways

  • The Claim Settlement Ratio shows how many insurance claims a company pays in a financial year.

  • A high CSR means your family is more likely to get the claim amount without delays.

  • CSR is one of the best ways to check the reliability of a life insurance provider.

  • IRDAI shares official CSR data for all life insurers every financial year.

  • Filling your application form truthfully ensures fewer chances of claim rejection.

What is the Claim Settlement Ratio?

The Claim Settlement Ratio (CSR) of an insurance company is the percentage of insurance claims settled in a financial year compared to the total claims filed. It indicates the credibility of the insurance company. This highlights the importance of your life insurance policy, since having your claims reliably filed and settled is a crucial aspect of your policy.

In general, the Claim Settlement Ratio of an insurer is viewed as an indicator of its overall claim-solvability and risk management ability. The higher the Claim Settlement Ratio of an insurance company, the better it is.

Canara HSBC Life Insurance has a Claims Settlement Ratio for FY 2024-25 of 99.43%^.

Get Life Cover Instantly

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

How is Claim Settlement Ratio Calculated?

The Claim Settlement Ratio of an insurer is calculated using the formula given below:

Claim Settlement Ratio = (Total no. of Claims Approved/Total no. of Claims Received) x 100

This result is represented in the form of a percentage. Let us assume that an insurance company has a Claim Settlement Ratio of 99.43%. This means that the insurer has settled and paid out 99.43% of the 10,000 claims filed with them.

Why is Claim Settlement Ratio Important?

The importance of life insurance lies in the assurance that, in the event of the sudden demise of the insured, their beneficiaries can receive the insurance coverage. This, in turn, will help them look after their current and future financial needs in the absence of the insured. This is the primary agreement made between the insurer and the policyholder. It is beneficial in the following ways:

  • Helps in the Family’s Financial Stability- A high claim settlement ratio gives peace of mind that the insurance provider will deliver when it matters most. It ensures that your family receives the promised sum without delays or disputes. This money can help them meet daily expenses, repay debts, or manage emergencies. Financial stability during emotional distress can make a big difference, allowing your loved ones to recover without worrying about how to make ends meet.
  • Indicator of Insurer’s Reliability- The Claim Settlement Ratio is a key metric that reflects the reliability and credibility of a life insurance company. A low ratio might indicate issues such as inefficient claim handling, lack of transparency, or poor customer service. At the end of the day, life insurance policies can only be as reliable as the insurance company that provides them. Thus, the Claim Settlement Ratio helps you make an accurate judgment of the trustworthiness and competence of an insurer.

    Every financial year, the Insurance Regulatory and Development Authority (IRDAI) in India issues the Claim Settlement Ratios for every insurance company in the country. A high Claim Settlement Ratio can help you determine whether a company can be depended upon to provide the promised claim to the beneficiaries of the insured. It also indicates that the insurance company has a high customer satisfaction experience and a strong underwriting procedure.

What is an Ideal Claim Settlement Ratio?

The claim ratio, or claim settlement ratio, tells us about the percentage of claims that are settled by the insurance company out of the total number of claims raised.

The higher the claim ratio of an insurance company, the better the chances of your claim being settled. But note that you should not base the decision solely on the claim settlement ratio.

Check the size of the insurance company to get a better idea of the claim ratio. Larger companies can have a lower claim ratio due to the volume of claims they are handling. Apart from that, the following are some additional factors that decide an ideal claim settlement ratio:

  • Accuracy of Policyholder Information- The accuracy of information provided at the time of policy purchase plays a key role. When customers are transparent about their health, lifestyle, and personal details, it becomes easier for insurers to process claims swiftly.
  • Insurer’s Internal Claim Process- An insurer with a well-defined internal process can settle claims faster and with fewer errors. Timely documentation, proper verification, and trained staff help avoid unnecessary delays. A smooth and clear claim journey builds trust and reduces rejections. When the process is efficient, policyholders and their families face less hassle and stress. This is often reflected in a high and consistent claim settlement ratio.
  • Underwriting Strength and Transparency- Strong underwriting ensures that policies are issued after a thorough risk assessment. Transparent communication about terms, exclusions, and documentation needs also builds confidence. Insurers that maintain high standards in these areas often settle claims more smoothly. Transparency keeps both the insurer and the policyholder aligned, which helps improve overall claim experience and keeps the ratio healthy.
  • Regulatory Compliance and Customer Support- Factors like regulatory compliance and customer service standards also affect the claim experience. Companies that regularly update their claim procedures and focus on transparency are more likely to earn trust and maintain high settlement rates.

How to Claim a Life Insurance Policy?

We buy an insurance policy so that our family stay financially protected even if we are not present with them. Thus, it is the responsibility of the insurance provider to make sure that the claim under the policy is settled quickly and appropriately, so the family can receive financial support as soon as possible.

Canara HSBC Life Insurance guarantees you the quickest claim settlement process, with no hassles, in the following simple steps.

  • Registration of the Claim: At the earliest, you need to notify the insurance provider of the death.

  • Fill the Claim Forms: Fill out the required claim form and submit it along with the necessary documents. These are available online.

  • Processing and Claim Settlement: After you have submitted these documents, the company’s assessors will verify the claim. After the decision is made, the claim will be settled, and the beneficiary will receive the amount.

What are the Documents Required for Claim Settlement?

To file the claim, you need to make sure that you present all the necessary documents to the insurance provider so that it can be processed without any hassles.

Here is the list of the documents required by the insurer:

  • Policy Document
  • Death Certificate of the Deceased
  • Death Claim Form (Form C)
  • A physician’s statement form to be filled out by the medical practitioners (Form P)
  • Treating Hospital Certificate (Form H)
  • Employers' Certificate (Form E)
  • School Certificate

Why is our Claims Settlement Process Reliable?

Easier processes and speed of settlement are important during life insurance claims. At Canara HSBC Life Insurance, we understand that during such emergencies, time is of the essence. Therefore, we ensure that the following factors, which make our claim settlement process reliable, are always followed:

  • Fast Process: Our claim settlement process for life insurance claims can process amounts for up to ₹1 crore. However, it varies from case to case.
  • Transparency: You can get the required document list and form from the branch or download it from the website. The detailed document list ensures that you don’t miss anything before submitting the claim. You can also track your claim application online through the website.
  • Good Support: Your claim application is processed through the branch offices or the corporate office through the post. Once your claim is submitted, you can contact us, and our representative will support your application process to ensure a smooth settlement.

What are the Things to Keep in Mind to Avoid Claim Rejection?

To ensure that your claim settlement process happens smoothly and you get your claim without any objection, you should keep in mind the following things.

  • Disclose all the Relevant Facts- Insurance policies work on the "full disclosure principle." When purchasing an insurance policy, you should disclose all the necessary facts truthfully to the insurer. Based on your information, the premium is calculated. If you hide the details to get a lower premium, the insurer may cancel the policy as hiding relevant facts amounts to a breach of contract under insurance.
  • Fill in the Application Form yourself- Many insurers can offer to fill out your form for you. However, you should fill in the details asked in the form yourself so that facts don’t get misinterpreted or misused.
  • Read the Terms and Conditions- This is the most important part of the policy. You need to be fully aware of the policy you are purchasing. You should know the terms and conditions thoroughly.

    Use the free-look period offered by insurance companies to carefully look over the policy and decide on it. If you do not find the policy suitable, you can cancel it within these 15- 30 days and get a refund.

  • Inform your Nominees- An insurance policy requires you to name nominees. These are the people you nominate to receive the sum assured if you die during the policy term. You should keep your nominees informed about the policy and the claim process.
  • Keep your Documents Safe-The nominee appointed by you cannot initiate a claim after your death without submitting the necessary documents. Make sure you have all the documents and claim forms with you so that the claim can be settled faster.

Conclusion

Choosing a life insurance plan requires a careful approach, particularly because it is about the confidence that your loved ones will be protected, especially during financially tricky situations. Therefore, the Claim Settlement Ratio matters. It is the reassurance that your insurer will keep its promise when it counts the most.

With a Claim Settlement Ratio of 99.43 per cent, at Canara HSBC Life Insurance, we stand among the most dependable names in the industry. Our dedicated claims team ensures a smooth, transparent, and supportive experience when you need it the most. So, when you choose us, you are choosing peace of mind for your family and a future that stands firm in every situation.

FAQs Related to Claim Settlement Ratio

The first thing you need to do while applying for claims is notify the insurance company about the death of the insured. For this, you can contact the agent. You can apply from the website as well.

To get more assistance regarding claims and settlements, you can follow this link and fill out the form: https://www.canarahsbclife.com/customer-service/claims 

Alternatively, you can also call our toll-free number: 

  1. 1800-891-0003
  2. 1800-103-0003

The claim settlement period may depend on the following factors:

  • Type of policy
  • Claim amount
  • Age of the policy
  • Need for claim investigation

Your claims are settled within just 30 days of document submission here at Canara HSBC Life Insurance.

You can get the claim forms either through the company’s website or by visiting the nearest office. For filing your claim with Canara HSBC Life Insurance, visit:

https://www.canarahsbclife.com/claims/claim-forms to download the necessary claim forms for both individual and group policies.

Alternatively, you can also visit the nearest branch office of the insurer.

The claim benefit will be provided to the beneficiary/nominee, when the person for whom the policy was taken, dies during the term of the policy.

The following parties are eligible to receive the claim:

  • The nominee appointed by you
  • Guardian of the nominee if the nominee’s age is less than 18 years.
  • The proposer or the assigned party of the policy.
  • You will be eligible to receive the claim, if the claim is for disability or a critical illness covered
  • under the life insurance policy.

The claim must be reported by you to the insurance company at the earliest time after the death has occurred. This helps speed up the claim settlement process.

However, terminal and critical illness claims can be filed within 30 days of the diagnosis.

The insurer can reject your claim in the following circumstances:

  • The death occurred due to an exempt cause.
  • If you have entered false information on the application form.
  • The policy had lapsed before the claim.
  • Not disclosing the information that is essential to the life insurance policy.
  • If there is a discrepancy found in the claim documents submitted.

The claims of group policies can be received by the insured or their nominees and legal heirs.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

Life Insurance Policy Lapse: Impact, Risks and What You Can Do?
16 Jan '26
3002 Views
10 minute read
Know what a life insurance policy lapse means, why it happens, how it affects coverage and benefits, and the options available to restore protection.
Read More
Life Insurance
What Is Premium in Life Insurance? Meaning & How It Works
15 Jan '26
1481 Views
8 minute read
Insurance premium is an amount paid by an individual to the insurance provider for availing of the insurance policy. Know the meaning & how to calculate the life insurance premium.
Read More
Life Insurance
Subrogation in Insurance: What it Is and Why It's Important?
13 Jan '26
1259 Views
8 minute read
Learn about subrogation in life insurance and how it affects your claims. Discover more insights with us for smarter coverage and financial security.
Read More
Life Insurance
Best Investment Options with High Returns in 2026
10 Jan '26
9682 Views
16 minute read
Best Investment Options in India. Looking for investments to meet your long-term financial goals? Here are the best investment plans for the year 2026 in India.
Read More
Life Insurance
Have Multiple Life Insurance Policies? Things You Should Know
09 Jan '26
1291 Views
7 minute read
Is it legal to own multiple life insurance policies? Would it cause any problem in claim settlement? Discover your answers here.
Read More
Life Insurance
9 Things to Do If You Can’t Pay Life Insurance Premiums
08 Jan '26
2448 Views
14 minute read
If you can’t pay life insurance premiums, learn nine practical steps to keep your policy active, avoid lapse, use grace periods, and explore options like revival or premium changes.
Read More
Life Insurance
What is Survival Benefit in Life Insurance?
06 Jan '26
3233 Views
7 minute read
Learn about survival benefits in life insurance, how they work, and their key features. Understand eligibility and payouts with Canara HSBC Life Insurance.
Read More
Life Insurance
Types of Life Insurance: Which One is Best for You?
05 Jan '26
3117 Views
9 minute read
Learn about different types of life insurance policies with Canara HSBC Life Insurance. Discover the best plans in India in 2026 and know how to buy them online.
Read More
Life Insurance
Principle of Indemnity: Meaning, Concept, Example
05 Jan '26
4537 Views
11 minute read
Understand the Principle of Indemnity in insurance. Its meaning, concept, and real-life examples. Learn how it protects policyholders from financial loss.
Read More
Life Insurance

Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan
  • 3 Plan options
  • Life cover till 99 years
  • Steady income benefit
  • Block your premium at inception

Start Young, Pay Less, Stay Secured

Young Term Plan
  • Life cover till 99 years
  • Coverage for spouse
  • Block your premium rate
  • Covers 40 critical illness

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover