An insurance settlement between the coverage organization and the insured is certainly one of belief. The moment of reality on this courting seems to be when there may be a declaration through the insured (inside the case of a nonexistence policy) or the dependents (in the case of a life coverage claim). Until that second comes, the whole thing is hunky-dory- rates are paid regularly by the clients, and the employer is only too glad to receive them. However, when a declaration appears, an insurance corporation assesses the claim intently, as each claim paid out is a fee for the organization, hurting profitability. Thus, there’s a fundamental battle here: the insured wishes the most claims to be paid, while the insurer would like to reduce the claims outflow to the feasible volume.

From a patron’s perspective, looking at the claims agreement records of life insurance or a general assurance company is crucial before determining how to buy insurance coverage from that corporation. During the sales technique, the income representatives can be all sugar and honey so that the prospective patron signs and symptoms up. But the truth of the problem is if the insurer you’re thinking about has an awful history of claims settlement, there is an excessive chance that you will face a declared rejection or reduction when the time comes to record a claim.

We closely examined the declared agreement records of the various Indian insurance regions. This is what that information tells us:

LIFE INSURANCE: Apr ’09-Mar ’10, Claims paid as a percent of claims filed

LIC 96.54%

Private 84.88%

Total 95.24%

LIFE INSURANCE: Apr ’09-Mar ’10, Claims refused as a percentage of claims filed

LIC 1.21%

Private 7.6%

Total 1.93%

NONLIFE INSURANCE: Apr ’09- Mar ’10, Claims paid as a percentage of claims filed

For Fire insurance, eighty-one % of the claims were paid using the four public region widespread coverage corporations. In comparison, seventy-three % of the claims filed with the private area businesses were paid.

For Marine coverage, 76% of the claims filed have been paid through the four public quarter preferred coverage corporations, while 83% of the claims filed with the non-public general insurance groups have been paid.

For motor insurance, 88% of the claims were paid through the four public quarter widespread insurance organizations simultaneously, and 80% were filed with non-public, well-known insurance agencies.

For Health insurance, a higher percentage of claims have been paid using public groups.

The facts above truly show that the Indian Public area coverage businesses are greatly beneficiant in paying claims. The existing insurance records show that LIC will pay nearly 97% of the claims while the personal Indian existence coverage organizations spend about 85%. The equal sample is revealed within the nonlifestyles coverage zone. On a normal foundation, the claims ratio of the general public nonlife- companies is higher than that of personal businesses. However, one needs to be careful here before leaping to a conclusion. Companies could be sourcing the wrong kind of enterprise inside the public with lax underwriting norms, whereas the non-public groups could be more stringent on the access time. However, the worrying part is the claims denied ratio of the personal existence insurance agencies, which is over 7%. In the case of an existing agency, the claim is a death. There can be no ambiguity here- a person is either dead or alive. The repudiation figure of seven% seems mysteriously high here.