Buying a life insurance policy is all about covering risks. You make a small regular payment and ensure that if anything unfortunate happens to you, your family’s future would not be jeopardised due to financial constraints. This can be achieved by a simple financial product known as life insurance policy. In exchange for the annual premium that you pay, the insurance company promises to pay a lump sum to your family in case of your unfortunate and untimely demise. You can also cover critical illnesses under the life insurance policy, which guarantees a pay-out if you are diagnosed with any listed illness.
The COVID-19 pandemic has made many people across the world realise the importance of having a life insurance policy[1]. Given that over four million people across the world lost their lives prematurely due to the coronavirus, this realisation is natural. In India alone, over four lakh people have succumbed to the virus[2]. Shocked by COVID deaths, a large number of Indians are rushing to get life insurance[3]. However, with so many options available in the market, sometimes it can be overwhelming to narrow down on the suitable plan.
Buying life insurance can seem daunting at first but there are easy ways to determine which policy you should buy. Essentially, life insurance is basically an agreement between you (the policyholder) and the insurance company, wherein the latter agrees to pay a certain assured sum of money as per the conditions and type of life insurance bought.
The Importance of Claim Settlement Ratio
With COVID-19 upending so many lives, the need for life insurance is higher than ever. It’s a good idea to leave behind a sum of money that your loved ones can utilise in your absence. Now, here is where things can get a bit tricky. While the nominees chosen by the policyholder can claim the sum assured under the policy, you would not want them to go from office to office, department to department trying to recover what rightfully belongs to them. Moreover, you would not want the claim to be rejected on frivolous grounds. After all, what is the point of buying the life insurance policy if your family is not able to access the sum assured in your absence, or has to struggle for it?
To have peace of mind in this regard, you could take one important step while buying the life insurance. It is to look at a life insurer’s Claim Settlement Ratio record. By doing this, you can ensure that you choose an insurance partner that is truly your friend in need and whom you can trust with your family’s future.
What does the Claim Settlement Ratio signify? Well, this ratio is basically a representation of the proportion of claims that the insurer settled against the total number of claims filed for a particular duration. In this regard, the higher the ratio, the better are the chances of your claims getting honoured. That is because it means that the insurer approved most of the filed claims.
The government’s insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) releases the claim settlement ratio of all life insurers in the country every year. You should mandatorily check this data before deciding on your preferred insurer.
It can be easy to get swayed by lower premium amounts or additional policy benefits from insurance companies, but ultimately, there’s no point in picking them if they’re unlikely to honour a claim when required.
Choose Bajaj Allianz Life Insurance.
By now, you know that it is crucial to pick an insurer that not only offers attractive benefits during the term of the policy, but also honours the agreement and disburses the sum assured when a claim is raised. We recommend you check out life insurance policies from Bajaj Allianz Life Insurance, one of the most trusted names in the sector. Their Claim Settlement Ratio for the year 2020-2021 stands at an impressive 98.48 per cent~ and the company is known for their One Day Claim Approval process%.
We hope this helped you to clear some doubts about picking a suitable insurance policy for yourself and understanding the importance of Claim Settlement Ratio. Do let us know in the comments below if there’s anything else you’d like us to explain in detail.
References:
[1] https://www.cnbc.com/2020/10/14/life-insurance-sales-increase-due-to-coronavirus-pandemic.html
[2] https://www.worldometers.info/coronavirus/
[3] https://www.livemint.com/insurance/shocked-by-covid-deaths-indians-rush-for-life-insurance-11623832428821.html
~ Individual Claims Settlement Ratio for FY 2020-2021
% 95% of non-investigative individual claims approved in one working day for FY 2020-21. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices
BJAZ-WEB-ECNF-01863/21
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