Claim Settlement Ratio is like a benchmark to gauge the trustworthiness of an insurance company. There's a very simple formula to calculate the claim settlement ratio.
Claim Settlement Ratio (CSR) =
Number of claims settled by the insurance company
Total number of claims received by the insurance company
The CSR is calculated for one financial year. The more the CSR, the more trustworthy the insurance company.
The basic requisite of buying an insurance policy is the financial help you need in the time of crisis. Claim settlement is nothing but this financial help given to you by your insurance company when you apply for the same. Let us understand the CSR with an example.
Consider that an insurance company receives 1000 claims and it is able to settle 930 claims. Now by applying the formula, we get that, the claim settlement ratio of this insurance company is 930/1000 = 0.93. Percentage wise it is 93%, which is pretty high and you can safely conclude that this insurance company is very reliable to buy insurance from.
Insurance for a bike covers:
1. Loss/damage to you two wheeler due to natural calamities, or unprecedented tragedies
2. Third party legal liability
3. Theft of your two wheeler
4. Personal accident cover
When you claim bike insurance for own damage then the claim gets settled faster than when you claim the settlement for theft or third party liability. For latter the insurance company has to depend upon the police investigation and court orders in many cases, which might take longer time than anticipated.
It is advisable that you compare the features as well as claim settlement ratio of different insurance companies when buying two wheeler insurance online or offline. A higher claim settlement ratio implies that it is very likely that the insurance company will settle your claim.
The claim settlement ratios for all the insurance companies registered with the IRDAI (Insurance Regulatory and Development Authority of India) can be obtained from their website.
We hope that this information is useful and will help you make informed decision while buying two wheeler insurance. Bajaj Allianz offers one of the best bike insurance policies in the market. Visit our website or contact our executives for more details.
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