Term Insurance Plans in India with Claim Settlement Ratio

Posted by Jenny Dsouza on April 6th, 2017

Term insurance plans in India are considered to be the cheapest of all and the trend is to only be bothered about the premium without looking into other factors while buying a plan. A plan has to be looked into its totality that includes the premium, terms and conditions being offered, the background of the company, the fine print of the contract and the insurance provider’s claim settlement ratio. The best life insurance policy will have to score high on its claim settlement ratio to be worth investing in.

Before going further, let’s understand what this ratio is and why is it so important:

This is one of the most crucial aspects of insurance and it can be defined in simple terms as the ratio of successful claim settlements against claims filed. For example, if in a financial year a company receives 1000 death claims and it settles 975 out of them, the ratio will stand at 97.5%. This is a very good ratio and companies are expected to not only settle claims as soon as they are filed, but also to settle the deserving ones. The ones doing it in the best manner are considered to be the best for purchasing a policy. Therefore, the claim settlement ratio becomes so important while doing life insurance policies comparison.

Here we would like to share with you the top 5 companies with the best claim settlement ratios for the year 2014-15 as per Insurance Regulatory Authority of India’s (IRDA) annual report:

Most companies can reject your claims owing to incomplete or incorrect information mentioned in the policy document filled while buying the policy. Even as it is your right to do a term insurance plans in India comparison while buying a plan, it is your duty to disclose complete as well as accurate information to avail the claim benefits ensuring your claims are not rejected.

There is one favourable news for customers, though, as per an amendment to Section 45 of the Insurance Act, if your policy is more than 3 years old, the insurance company will have to approve the claim no matter what and cannot deny it on any grounds. Even then, you need to furnish correct details in the policy document to avail benefits on time.

The term insurance plans in India is very crucial for you and your family. It is better to spend a bit of time to buy the best life insurance policy rather than not having a policy and being financially vulnerable.

Source: http://www.suggestinsurance.com/blogs/term-insurance-plans-in-india-with-claim-settlement-ratio/