Claim Settlement Ratio is the number of claims passed by an insurance company in a year’s time. One must always consider checking the claim ratio of a company before buying a life insurance or any kind of insurance plan such as health, savings or ULIPs.
Claim Settlement Ratio is sometimes also referred to as the Claims Paid Ratio, which helps determine if the insurance provider is reliable. Most financial advisors suggest taking the claim settlement record in to consideration over the lowest premiums and highest benefits offered.
We buy a life insurance with a trust in the life insurance company to secure the financial future of our loved ones in our absence. To ensure that you choose the right company, you must look towards the claim settlement ratio, a metric that reflects the reliability of a company terms of how easily they settle death claims.
Why is claim settlement ratio important for insurance?
The loss of a family member causes considerable emotional and financial distress. However, a good claim settlement ratio can make your life easier during tough times. Claim settlement is an important factor in view of the reliability and consistency of a Life Insurance Company.
This ratio tells you about the number of claims settled by the company, over the total number of claims received within a period of time. Canara HSBC Oriental Bank of Commerce Life Insurance boasts of a healthy and competitive death claim settlement ratio of 98.12% for the year 2019-20.
Also, with a seamless claim settlement process, a Canara HSBC Oriental Bank of Commerce Life Insurance policy is a promise to your loved ones that their financial needs will be taken care of in your absence.
Claim Settlement Ratio as previously mentioned is the total number of claims a life insurance company accepts in a certain period. It can be found using a simple calculation:
Claim Settlement Ratio = Total Number of claims approved/Total Number of claims received
With the launch of online insurance policies, it is easy to get persuaded by the low prices offered. However, in this advent, you must not forget to compare plans as it gets super easy. If you forget to compare the claim paid ratio, your well-planned insurance policy might go to waste.
Companies with low claim settlement ratio may have a way of not honouring their claim processing. So, choose insurers who guarantee to provide the sum assured to your family.
Why is Canara HSBC OBC Life Insurance Company’s Claim Settlement Ratio competitive?
Every policy holder wishes for a hassle-free claim settlement process that can ensures that their beloved family will not have to run around to get the insurance proceeds, in case of need. Canara HSBC Oriental Bank of Commerce Life Insurance Company’s claims paid ratio for 2020 is 98.12% as per Annual Audited Financials for the financial year 2019-20. In addition, Canara HSBC OBC Life Insurance also offers easy 1 Day Claim Settlements. This quick process is called ‘InstaPromise’ which provides settlement of the death claims up to 1 crore within one day from the claim receipt, provided the policy has been in force for at least three years, and other basic requirements.
Some Points to Remember:
Most of us expect protection from a life insurance policy, but, what if your family is not provided with the right assistance and insurance proceeds after you are gone? It can be the worst experience, plus if your beneficiaries are entirely dependent on the insurance proceeds, it can be a huge financial setback. Therefore, it is always essential that you check the claim paid ratio or claim settlement ratio of the company from which you are purchasing your policy.
Higher the percentage more is the likelihood that a claim will be accepted when filed. Another important reflection of this percentage is on the company’s finances because higher ratios tells that a company’s finances are secure since they are willing to pay the claim amount to its customers.
Moreover, it also shows that insurance companies care for its customer’s and truly promises to take care of their loved ones during trying times. And, at Canara HSBC OBC Life Insurance they ensure their claims and other requests are handled well and on time.