Claim Settlement Ratio is a ratio of the number of claims paid to customers by the insurance company to the total claims received by the company. It is calculated as:
Claim Settlement Ratio = (Total no. of claims approved/Total no. of claims received) x 100
This result is represented in the form of a percentage.
In general, the Claim Settlement Ratio of an insurer is viewed as an indicator of its overall claim-solvability and risk management ability. The higher the Claim Settlement Ratio of an insurance company, better the company.
Please find below the overall claim settlement ratio of various insurance companies for FY ending on 31/03/2021