Know more about Claim Settlement Ratio : Finding a good insurance provider or an insurer who can promise good coverage at an affordable rate is not very tough; there will be umpteen providers who will give you a reasonable quote just to get you enrolled into the policy. But finding a provider who offers good customer satisfaction with a good claim settlement background, may be a little difficult but is vital while opting for an insurance policy.
What is claim settlement ratio?
Claim is a formal request put forth to the insurance company to make payment on terms of the insurance policy. Claim Settlement Ratio is the ratio of settled claims by the provider to the ratio of total claims filed in a given period. Claim settlement is one of the most important services an insurance provider offers to the insured upon maturity (completion of insurance term) or due to the death of the insured (before the policy becomes mature).
Hence if the claim settlement ratio of the insurance provider is a 95%, then 95 claims are settled out of the 100 claims filed. The remaining 5% ratio is either pending or rejected for various reasons by the insurance company. Hence an insurance provider with a good claim settlement ratio will give you peace of mind while settling your claims. You can be sure that your money will not go wasted and you are dealing with a trusted individual who respects your time and money.
Why is claim settlement ratio necessary?
A good claim settlement ratio is necessary because as an insured, you will have many anxieties on your money invested with the insurance provider. You need to be sure if you will get the claims settled on time; this factor mainly builds the trust between the insured and the insurance provider based on which they decide whether to opt for this provider for lifetime as well recommend them to any other friends and relatives.
Good companies pay a great percent of claims swiftly without any delay as they have to deal with many processes and procedures before taking an individual as a customer and after they have sold them a policy. It is these companies that ensure good customer satisfaction and are more accommodating to guidelines than companies that register a lower claim settlement ratio. A customer or the insured hence will go along only with that agency that promises a good claim settlement ratio regardless of whatever the odds they face.
While choosing an insurance provider it is always a good choice to do a background check on its claim settlement ratio and ensure that the provider can be trusted against all odds and doesnβt make you run around to get your claims.
Claim settlement ratio is the ratio of settled claims by the provider to the ratio of total claims filed in a given period.As mentioned in the article, we need to be sure if we will get the claims settled on time; this factor mainly builds the trust between the insured and the insurance provider based on which they decide whether to opt for this provider for lifetime as well recommend them to any other friends and relatives.
Thereβs a lesson in this for everybody - and another thing to research before signing up for any kind of insurance policy.
Claims Settlement Ratio will show you if your provider has a habit of paying on claims, or just ignoring or refusing the bulk of claims made to them. A ratio that shows good payouts on claims will make you feel a lot more secure in your provider, because you have a much better chance of redeeming your funds - which is what insurance is for!
A reputed insurance company is not the one who advertise their policies well but is the one with a good claim settlement ratio. This not only means settling the claims but also on time when the insurer needs it the most. This also involves the insurerβs role to make a note of the companyβs claim settlement ratio before insuring it. In all a very informative and a must read article for every individual before choosing the insurance company.
In these tough times, a look into the claim settlement ratio of an insurance company is one of the best ways to know if the company settles its claims or makes you run around the bush. I think a claims settlement ratio of more than 85% is good enough. Also the reputation of the companies is at stake here as word of mouth gets around far more quickly than advertising.
I have never understood the principle of insurance, actually, I have never liked the principle of insurance. However, when you get a little older and smarter you may start to think about choosing the right insurance plan. This article nicely explains what you should be careful about when choosing the best insurer.
Comments are closed.