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Being a family person is both a privilege and a responsibility. You are willing to put in all the additional work hours to provide for your loved ones. However, when you return home after a long day and see your child's smiling face, you know that your efforts are in the right direction – towards providing a better future to your family.
Having a term insurance plan as a contingency, allows you to make sure that your family remains financially sustained even if you are no longer there. But is there any way you can be sure that you have invested in the right term plan? While your loved ones look up to you for everything, is there anything you can look up to, for choosing the right term insurance coverage?
Thankfully, there is one thing – Claim paid Ratio, or #IndiaKeBharoseKaNumber.
What is Claim Settlement Ratio/Claim Paid Ratio?
Claim Settlement Ratio (CSR) or Claim Paid Ratio (CPR) is a definitive metric that helps you assess an insurer's commitment to delivering timely insurance claim settlements. The CSR helps you analyse how efficient the insurer is, in making sure that your family has everything to carry their lives forward in your absence.
The choice of insurer with a high/good claim settlement ratio or claims paid ratio, thus makes a lot of difference for your family in time of need. Among the other factors that you can check before finalizing your life insurer, besides thoroughly understanding 'what is claim settlement ratio- claims paid ratio,' the CPR summarizes the ultimate moment of truth for your family.
Why should you Consider Claim Paid Ratio?
Claim paid Ratio meaning is simple – it indicates the number of claims paid out of all the claims received within a financial year. In other words, the claim paid ratio indicates how often the insurance company has kept its promise.
For example, a life insurance company receives 1000 death claims in a financial year and pays out 980 of them within the financial year, the claim paid ratio of the insurer will be 98%. Thus, insurers with efficient claim paid processes naturally end up with higher claim settlement ratios.
Before talking about what is Claim Settlement Ratio further, it is pertinent that we first understand the life insurance company's perspective of having a streamlined and robust claim settlement process in place. The primary purpose of a life insurance plan, especially term insurance, is to provide financial support to your family in case something happens to you.
When you purchase a term plan or any other insurance product from an insurer with a high claim settlement ratio:
- You can be assured that the entire experience of claim filing to disbursement will be simple, convenient, and transparent
- In case of an unexpected mishap, your loved ones will have the assurance of a quick disbursal of the life insurance benefit
As a rule of thumb, therefore, you must consider the claims process and the claim paid ratio of a life insurance company before purchasing insurance from them.
Why Is Claims Paid Ratio Important?
If you are wondering about what is claim paid/settlement ratio, you must remember that the higher the claim paid ratio or claim settlement ratio is, the more confidence you will have on the insurer. At the same time, you will be assured that the insurance company has a high-risk management ability overall, i.e. they have implemented the necessary processes to identify and handle faulty claim applications.
Why Is Claims Paid Ratio Important?
If you are wondering about what is claim paid/settlement ratio, you must remember that the higher the claim paid ratio or claim settlement ratio is, the more confidence you will have on the insurer. At the same time, you will be assured that the insurance company has a high-risk management ability overall, i.e. they have implemented the necessary processes to identify and handle faulty claim applications.
Overall, a high CSR is reflective of the insurance company's commitment to its policyholders. Max Life Insurance ranks among the list of insurers with the claim settlement ratios of above 90%. For the FY 2019-20, our claim settlement ratio was 99.22% *.
*Source - Annual Audited Financials FY’19-20
Overall, a high CSR is reflective of the insurance company's commitment to its policyholders. Max Life Insurance ranks among the list of insurers with the claim settlement ratios of above 90%. For the FY 2021-22, our claim settlement ratio was 99.34% *.
*Source - Annual Audited Financials FY’21-22
Max Life's Claim Settlement/paid Ratio Through the Years
Max Life Insurance has significant efforts to improve the claim settlement process and experience. A statement of this commitment lies in the claim paid ratios of the last five years.
Max Life Insurance has been able to achieve and maintain a claim settlement ratio among the private life insurers for the last five financial years, as per subsequent IRDAI Annual Reports and Max Life Public Disclosures and Annual Audited Financials.
|
Claim Paid % FY'15 ^ |
Claims Paid % FY'16 ^ |
Claims Paid % FY'17 ^ |
Claims Paid % FY'18^ |
Claims Paid % FY'21# # |
Ratio |
96.95% |
97.81% |
98.26% |
98.74% |
99.34% |
^IRDAI Annual report FY’17-18, FY’18-19 , FY’19-20, FY’20-21
## Annual Audited Financials FY’21-22
The latest claim paid ratio (claim settlement ratio) for max Life Insurance is 99.34% * for FY 2021-22.
*Source - Annual Audited Financials FY’21-22
Know Your Claim Settlement Process at Max Life Insurance
Throughout the last five years, Max Life Insurance has taken steps to improve its claims settlement process continually. The claims paid process at Max Life Insurance is not only faster but also more convenient for the bereaved families depending on it. Max Life Insurance's claim paid process includes the following unique features:
1. Transparent Claim Filing Information
Max Life Insurance website features a dedicated claim centre. The claim centre on the website offers the necessary information crisply.
Throughout the last five years, Max Life Insurance has taken steps to improve its claims settlement process continually. The claims paid process at Max Life Insurance is not only faster but also more convenient for the bereaved families depending on it. Max Life Insurance's claim paid process includes the following unique features:
1. Transparent Claim Filing Information
Max Life Insurance website features a dedicated claim centre. The claim centre on the website offers the necessary information crisply. Your nominee can either download the claim from the website's claim section or reach out to the nearest Max Life Insurance branch, where our experienced agents/advisors will help them understand the claim process and file the claim.
Your nominee can either download the claim from the website's claim section or reach out to the nearest Max Life Insurance branch, where our experienced agents/advisors will help them understand the claim process and file the claim.
2. Assignation of a Dedicated Claims Relationship Officer
For every claim, Max Life Insurance appoints a dedicated Claims Relationship Officer (or CRO). The primary responsibility of the Claims Relationship Officer is to make sure that your bereaving family members receive a timely settlement of the claim.
Max Life Insurance Claims Relationship Officer will assist your nominee(s) throughout the claim filing process – compiling and submitting the necessary claim documentation, timely evaluation, and disbursement of the claim.
3. InstaClaimTM
Max Life Insurance has introduced InstaClaimTM, wherein we endeavour to settle all death claims within one day of receiving the claim receipt, subject to the following conditions:
a) Claim amount on all eligible policies is upto Rs.1 crore
b) Claims are for policies that have completed three continuous years
c) All mandatory documents have been submitted before 3:00 PM on a working day
d) The claim does not warrant any field verification
For cases which warrant field verification, Max Life Insurance will pay claim in 5 working days after the receipt of all mandatory documents. Otherwise, Max Life Insurance will pay an interest on death claim amount for every day of delay beyond 5 working days. All claims that qualify instaclaim will be paid within 1 working day from the date of submission of mandatory documents else Max Life Insurance will pay interest at Bank rate as on beginning of financial year in which claim has been received (4.65% p.a. for FY’20-21) for every day of delay beyond 1 working day.
4. Supporting Education for Underprivileged Children
As part of our contribution towards building a more sustainable and equitable society, Max Life Insurance introduced a unique initiative called “Protect a Smile”*. In this Max Life Insurance funds 1 year’s education of an underprivileged child for every death claim it settles for its Term Insurance Plans during the rest of the current financial year. Max Life Insurance will help them become a knowledgeable citizen of tomorrow. Max Life Insurance will partner with AICAPD, a national level NGO which work towards the upliftment of children of economically and socially underprivileged and backward people.
*a. Protect a Smile is applicable to all term plans i.e. Max Life Five Year Renewal & Convertible Term Insurance (Non Participating)- 104N001V01; Max Life Easy Term Policy-104N002V01; Max Life Level Term Policy (Non Participating/Non-Convertible-104N009V01; Max Life Platinum Protect-104N060V01; Max Life Platinum Protect II-104N060V02; Max Life Return Term Plan- 104N069V01; Max Life Online Term Plan – 104N078V01; Max Life Premium Return Protection Plan- 104N083V01; Max Life Super Term Plan-104N086V01; Max Life Super Term Plan-104N086V02; Max Life Super Term Plan-104N086V03; Max Life Online Term Plan Plus- 104N092V01; Max Life Online Term Plan Plus- 104N092V02; Max Life Online Term Plan Plus- 104N092V03; Max Life Online Term Plan Plus- 104N092V04; Max Life Smart Term Plan - 104N113V01; Max Life Smart Term Plan - 104N113V02
b. Max Life Insurance will fund 1 Year Education of an under privileged child.
c. This is only applicable for all Max Life Term Plan related death claims settled between 1st March, 2020 to 31st March, 2021 as per Company Policy, as may decide from time to time.
d. It also includes all expenditures on Tuition Fees and school kit.
d. It also includes all expenditures on Tuition Fees and school kit.
All these measures are aimed at ensuring timely payment of claims and simplification of claims experience for our customers. At the same time, our endeavours also help us fulfil our social responsibility of supporting the future of underprivileged children. These efforts also reflect in the year-on-year growth of Claims Paid percentage.
Furthermore, Max Life Insurance had the latest individual claim paid ratio (claim settlement ratio) of 99.34% * for the FY 2021-22,
*Source - Annual Audited Financials FY’21-22
d. It also includes all expenditures on Tuition Fees and school kit.
All these measures are aimed at ensuring timely payment of claims and simplification of claims experience for our customers. At the same time, our endeavours also help us fulfil our social responsibility of supporting the future of underprivileged children. These efforts also reflect in the year-on-year growth of Claims Paid percentage.
Furthermore, Max Life Insurance had the latest individual claim paid ratio (claim settlement ratio) of 99.34% * for the FY 2021-22,
*Source - Annual Audited Financials FY’21-22
Know Your Claim Settlement Ratio or #IndiaKeBharoseKaNumber
While buying term insurance, it is crucial that you understand what is claim settlement ratio and how it works as a definitive metric for choosing a life insurer. Term insurance coverage is not only the most inexpensive and effective way to secure your family's lifestyle and goals financially. At the same time, know that you have an insurer with a good claim settlement ratio besides you, you can be sure that your bereaving family will not have to deal with the hassles of claim filing and disbursement if something happens to you.
At Max Life Insurance, claim paid ratio or claim settlement ratio meaning is all about being #IndiaKeBharoseKaNumber – ensuring a seamless and hassle-free insurance benefit disbursement to your family., we have exceeded all expectations of last 5 years by achieving the latest claim settlement ratio or claim paid ratio of 99.34% * for FY 2021-22. At Max Life Insurance, thus, you know that your claim settlement will not only be quick but will also be definitive.
*Source - Annual Audited Financials FY’21-22
ARN:- Jul/BG/22