Why Claim Ratio is Important When Buying Health Insurance

Buying a new health insurance policy can be challenging, especially if you are a first-time buyer as there are many options to choose from. To avoid the confusion and ensure that you get the best health insurance coverage for your family, you must take your time to assess your specific needs and other factors like family members’ medical history, their age, and budget.

Once you know your needs, compare the different health insurance policies and choose the one that suits your needs, offers maximum benefits and has an affordable premium. Just as it is vital to choose the right policy, it is critical to choose the right insurance company.

One of the best ways to choose the best insurer is to look at their claim settlement ratio. It is better to buy your policy from a reputed insurance company that has a good claim settlement record as you must be able to get policy benefits without any hassles during an emergency.

What Is a Claim Settlement Ratio?

The claim settlement ratio refers to the number of claims the insurer has settled successfully against the number of the requests they received during a specific period. The insurance company that has a high claim settlement ratio means you have better chances of getting your claim approved when needed.

Experts suggest that it is better to purchase a health insurance policy for a reputed insurance company that has a high claim settlement ratio (CSR) of 80% or more. While comparing the best insurer, make sure that you review the CSR of the past three to four years at least to get a fair idea about the company's credibility.

You can easily get the CSR-related data of any insurance company you want by visiting their official website or you can refer to the annual claim settlement ratio report released every year by the IRDA (Insurance Regulatory and Development Authority of India).

Importance of Looking for Insurer’s Claim Settlement Ratio While Buying Health Insurance

Get value for money

When you buy a health insurance policy, you pay the premium to the insurer periodically. And, as long as your insurance provider has a high claim settlement ratio of more than 80%, which is considered top industry standard, you can be assured that your money will not go to waste and when the need arises, the insurer will settle your claims without any hassle.

You can enjoy the benefits of your policy

The insurance company may offer you several benefits such as ambulance cover, cashless claim, home treatment coverage etc. However, all these benefits would not mean anything if the insurance company has a reputation of rejecting the health insurance claim requests or settles only 50% of the actual amount.

Even if your insurance company provides coverage against critical illnesses like cancer or COVID-19, their claim settlement ratio must be high so that you get the financial support you need to settle the bills on time.

Helps you compare policies

Whether you want to buy an individual health insurance policy or a family healthcare plan, you must compare the different plans before making the final choice. Many people use the CSR of the insurer to compare the policies and choose the right insurance company. A higher CSR of the insurer would mean that you have better chances of getting your claim settled.

Final Word

When it comes to buying a new health insurance policy for your family, you must check the claim settlement ratio of the insurance company. This will help make the right choice in choosing the best insurer by knowing their stability, financial history and credibility. When it comes to Kotak General Insurance, our CSR ensures that you have a hassle-free claim settlement.