Claim Settlement Ratio

First, you need to understand that the Claim Settlement Ratio is calculated for all the insurance products offered by the insurance company put together, and not any specific product.

Consider the following example to understand the calculation of Claims Settlement Ratio:

Let us say that a life insurance company receives 1,000 claims, within a year, out of which it settles 993 claims by paying the insurance benefit (or sum assured) while rejecting the remaining 8 claims.

The Claim Settlement Ratio for the company would be (993/1000) % or 99.3%

Claim Paid Ratio = (Total Claims Paid / Total Claims Received)

Overall, higher the percentage of the settled claims, better are the chances that your life insurance policy claim will be accepted and settled by the insurance company. Another reflection of a high CSR is on the insurance company’s finances. With settlement percentages up and above the 95% mark, a prospective life insurance buyer can be sure that the insurers are secure as they are willing to pay the insurance claim amount to most of their customers.

For the FY 2021-22, the claim settlement ratio of Max Life Insurance was 99.34% *. However, it is essential that you do not rely on this value as the only factor while determining your insurer.

You must factor other factors such as online reviews of the insurance company, the experiences of your near ones, the features, and benefits of the insurance plan, before making a choice.

Buying a life insurance policy is a long-term endeavor. Not only do you have to pay a significant amount of premiums over a specific payment tenure to avail the policy benefits, you also have to be sure that your insurance policy documentation is well-rounded so that it doesn’t get rejected.

Thus, you need to compare and purchase a life insurance plan from an insurer with a high claim settlement ratio. Claims Settlement Ratio is a reliable metric that can help you determine if a certain insurance company is trustworthy or not and that your family will not have to move from pillar to post in getting the insurance benefit, after your untimely demise.

At Max Life Insurance, we understand the importance of staying protected against life's uncertainties. We believe it is our responsibility to provide the best insurance coverage possible in your hour of need.

Our team of expert claim assessors are guided by the principle of being the 'Fairest, Fastest and Friendliest' in terms of claims processing. Our life insurance claim settlement processes, thus, includes the following three simple steps:

• Claim Registration & Document Submission
• Claim Evaluation
• Claim Decision & Settlement

For the FY 2021-22, Max Life Insurance had a claim settlement ratio of 99.34% *.

Furthermore, we assign a dedicated Claims Relationship Officer (or CRO), to guide your beneficiaries/ claimants at different steps of the claims process.

Mandatory Documents required for claims settlement ratio are:

• Original policy document
• Original/attested copy of death certificate issued by local municipal authority
• Death claim application form (Form A)
• NEFT mandate form attested by bank authorities along with a cancelled cheque of bank account passbook along with nominee's photo identity proof
• Discharge/Death summary attested by hospital authorities of FIR & Post Mortem Report/viscera report (in case of accidental death)

The grief of losing your dear one in the hands of destiny is beyond words. As your trusted life insurer, Max Life Insurance offers Instaclaim TM Service’ to settle your claims within one day, so that you can deal with your responsibilities in the absence of your loved one.

We, at Max Life, recognize that claim is the ultimate moment of truth for our business. Therefore, we intend to make your claim settlement experience convenient and quick with the InstaClaimTM initiative.

Through the InstaClaimTM initiative, Max Life endeavors to pay eligible death claims up to Rs. 50 lakh in only 24 hours. Additionally, a dedicated claim settlement officer further facilitates a convenient, quick, and simple settlement process.

The 24 hours claim settlement is available for the following:

• Eligible policies that have completed three continuous years
• The claim does not warrant field verification
• All mandatory documents are submitted before working
• Claim amount on all eligible policies is up to Rs. 50 lakh

Furthermore, if you don't receive payment within the time frame, you'll be entitled to additional payments in the form of " interest" on the total amount of your death benefit. T&C apply

With the InstaClaimTM initiative, Max Life further aims to enhance customer experience by paying death claim within just 24 hours in eligible cases.

Moreover, in a country with the low protection quotient(as per IPQ survey), Max Life’s claim settlement ratio of 99.34 percent gives a sense of security that their families will be financially safe during an eventuality, thus, encouraging them to opt for life insurance products.

As a policyholder or buyer, you can take a cue from the claim settlement ratio. However, the IRDAI claim settlement ratio should not be the only parameter that you consider when buying a life insurance policy. Instead, you need to ask whichever insurance company you have decided to purchase life insurance, to provide all the material information about their policy undertaking and claim settlement process.

On the other hand, you must make sure that you are sincere and transparent while filling out the application form so that your family does not have any problems while submitting a claim to the insurer, in your absence.

*Source:

As per annual audited financials, FY 2021-22