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A car insurance claim settlement ratio reveals the percentage of claims settled by a car insurance company in a particular fiscal year. This ratio can help you understand how quickly and efficiently the insurer settles claims made against a car insurance policy.
As a result, the car insurance claim settlement ratio is a crucial factor for you to consider when purchasing your motor insurance policy. Companies with a poor claim settlement ratio are more likely to default on your claim or not process it on time.
If you need your motor vehicle to be repaired, a delay in claim settlement can cause stress and financial strain. Read on to learn more about a car insurance claim settlement ratio.
The percentage of claims settled by an insurance provider in comparison to the overall number of claims it has received in a financial year is referred to as the car insurance claim settlement ratio.
Simply knowing the number of claims settled in a given year may not be accurate in isolation. This is why a ratio that compares this with the total number of claims received helps to give you a clearer picture.
As a metric, the car insurance claim settlement ratio is always measured in percentage. For instance, if a company has a claim settlement ratio of 97%, it means that it has managed to pay 97 out of 100 claims made by policyholders. The remaining 3% represents any pending or rejected claims.
There may be various reasons for an insurer to turn down claim requests, such as not making honest disclosures or providing wrong information at the time of filing the claim.
Generally, the higher the car insurance claim settlement ratio, the better the chances of your claim being settled and you receiving timely financial aid. So, choosing a provider with the highest and best claim settlement ratio in car insurance should be a guiding point when you are comparing insurers and policies.
Generally, a car insurance claim settlement ratio of above 80 is considered good. But a ratio above 90% is considered to be an ideal claim settlement ratio. Most car owners end up going for a policy by an insurer who has a ratio of over 90%. A CSR of above 95% is considered excellent which could be the best claim settlement ratio in car insurance for you.
You can check the car insurance claim settlement ratio of the insurer by visiting the insurer’s website or by checking IRDA’s annual report. However, the car insurance claim settlement ratio is not the only factor that is important. You should also check the claim filing process. A simple, quick, and easy process will help you go about your claim seamlessly.
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The majority of car insurers offer two types of claim facilities, reimbursement and cashless. Reimbursement claim settlement is when you pay the car repair bill and then get the money due to you from your insurer.
Usually, you may opt for this claim facility when the work on your vehicle is done at a garage that falls outside the insurer’s network. In this case, you will first inform the insurer about the damage, who will then send a surveyor to assess it.
Once the surveyor arrives, make sure you let them know all the required details and submit the necessary paperwork. This will ensure that your claim process goes smoothly. After the assessment is done, the surveyor will let the insurer know about the damages, and you can get your car to the garage for the work that is needed.
After the work on your vehicle finishes and you pay all the bills, you can begin the process for a reimbursement claim. Follow these steps:
Get the reimbursement claim form from your insurer
Fill out the form with accuracy
Attach all the necessary documents and submit the form
Upon submission of your form, the insurer will verify the details, and once the claim is approved, the amount will be transferred to your account.
In cashless claim settlement, the process begins from the time you inform the insurer about the accident or incident. After you inform the insurer, a surveyor will arrive to check the damage and loss to your vehicle. Once the surveyor completes their assessment, they will inform you and the insurer about the costs.
After this, you can get your vehicle to a network garage of the insurer. Here, the garage will directly send the bill to the insurer, who will settle it according to your policy’s terms.
Keep in mind that for a cashless claim, the work on your vehicle needs to be done at a network garage only. In case a network garage is inaccessible, you will have to opt for a reimbursement claim and get your vehicle repaired at any garage of your choice.
Also, ensure that you inform the insurer within the stipulated time frame for your claim to be considered. This time is generally between 24 to 48 hours.
Note: The majority of the insurers offer a towing service for both reimbursement and cashless claim. With the help of this facility, you can get your car towed to the garage without any extra cost.
The approval and rejection of your claims are based on your policy terms as well as the insurer’s terms. If you violate any of these, the insurer can reject your claim. The rejected claim is also reflected in the car insurance claim settlement ratio of the insurance provider.
Generally, an insurer rejects the claim for the following reasons:
If the intimation is not done on time
If you were driving under the influence at the time of the accident
If you were driving without a licence or with an invalid licence
If your insurance policy has lapsed
If you file a fraudulent claim
If you fail to inform the insurer about the modifications to your vehicle
If you violate the terms and conditions of your policy
If the damage falls under any of the exclusions of the policy
If the damage or loss occurs outside the geographical area stipulated by the policy
If the damage is a consequential loss or caused by your negligence
Insurance providers offer a claim amount based on your policy terms and conditions. However, if you feel that your claim should be higher, you can negotiate with the insurer. To negotiate, you will need to ensure that you know your policy terms and that the claim you are asking for is justified as per your policy.
To make sure that the negotiation happens smoothly, inform the insurer about the damages at the earliest. This is a crucial step that you should strive not to overlook. After that, do the following things to negotiate smoothly.
Create and maintain records of all the bills (vehicle and medical), copies of the FIR and other documents as proof of the accident.
Assess the damage to your car and go through your policy terms to understand the claim you can receive. Keep the amount flexible to accommodate the changes that may occur at the time of negotiation.
Write a demand letter to the insurer with details to justify your claim amount.
Make sure you highlight the points of your claim that are in your favour.
Accept the offer only if you are satisfied. You do not have to accept the first offer by the claims adjuster.
Be persistent and patient while following up on your request.
Get the accepted settlement in writing.
Seek the help of an expert or legal advice to get the best and fairest deal.
Focusing singularly on a high car insurance claim settlement ratio to zero in on an insurance company may not be a wise decision. Consider reviews and testimonials of the insurer’s services as well as the benefits and coverage of the specific policy to take the final call.
While the car insurance claim settlement ratio is an excellent factor to consider, remember that it can be affected by fraudulent claims made by policyholders. So, along with customer reviews, consider the following factors:
1. Duration of settling claims: Apart from the number of claims settled by a company, also take a look at the time taken by it to do so. This reveals its efficiency in expediting claims.
2. A healthy settlement record: This refers to the claim amount settled against the claim amount filed. If you see that the insurer settles a small claim amount easily, but not a higher claim amount, it is not a good sign. Generally, insurers with a uniformity and balance in the settlement record are the ones to go for.
3. Other parameters: Apart from the factors above, consider if the service quality, plan range, cost-effectiveness and other benefits that the company offers are suitable to you.
With this information, make sure you choose an insurance provider who offers a policy with a premium that fits your budget. This way, you can get the coverage you want without stretching your finances too much. On Bajaj Markets you can find the great insurance policies from an insurer with the best claim settlement ratio in car insurance.
When you inform the insurer about the accident, they will send a surveyor who assesses the extent of the damage and loss to you and/or your vehicle. Their assessment is sent to the insurer, and the claim process is based on that report.
There are multiple factors and circumstances under which the insurer can reject your claim. Common reasons for this include – late intimation, claim falling under exclusions and violation of policy terms.
To find a network garage nearest to you, you can check the list of network garages available on the insurer’s website. You can also contact customer support.
A No Claim Bonus (NCB) is a benefit offered by the insurer if you do not file a claim in the policy period. With this, you can get a discount on your premium for the next policy term at the time of renewal.
You can submit all the necessary or requested documents to the surveyor at the time of inspection.