Bajaj Allianz Claim Settlement Ratio: How It’s Calculated & Why Check?

By Okbima 01 Jul 2024
bajaj allianz claim settlement ratio

Bajaj Allianz Life Insurance is a joint venture between the Bajaj Group Of India & Bajaj Finserv Limited which offers many life insurance products to suit various needs. With a reported claim settlement ratio of 99.23%, they focus on providing clear & accessible plans for long-term goals. These plans are term insurance for financial protection, Unit Linked Insurance Plans (ULIPs) & retirement plans for wealth creation.  

Bajaj Allianz uses technology to make it easy for customers to buy and manage insurance policies online. They have many distributors all over India, which helps more people access their insurance products. This makes Bajaj Allianz a big player in the Indian life insurance market.

 

Bajaj Allianz Claim Settlement Ratio: Bajaj Allianz Claim Ratio Of 5 Years

Bajaj Allianz is known for quickly paying out valid insurance claims & their claim settlement ratio is 98.02%. According to IRDAI, they settle about 98 out of every 100 claims, which shows their dedication to helping people during hard times. This good reputation is why many people choose Bajaj Allianz for their insurance.

 

Financial Year

Claims Registered

Claims Settled

Claim Settlement Ratio

2015-16

1161

1068

91.3%

2016-17

16239

14887

91.67%

2017-18

14315

13176

92.04%

2018-19

12767

12130

95.01%

2019-20

12127

11887

98.02%

 

 

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What Is The Claim Settlement Ratio?

The claim settlement ratio is a measure used in the insurance industry to compare the total number of claims settled by an insurance company to the total number of claims received. It is calculated as the total number of claims settled divided by the total number of claims received during a specific time, usually one year. 

A high claim settlement ratio indicates that an insurance company is effectively handling and processing claims, providing financial security to policyholders in times of need. On the other hand, a low claim settlement ratio may be a red flag, suggesting that the insurance company is not meeting its obligations to policyholders and may have disputes or rejected claims.

Customers and policyholders often use the claim settlement ratio as a key factor in determining the reliability and trustworthiness of an insurance company. It is a critical indicator of the insurer's ability to honor claims and provide timely compensation to policyholders.

 

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How Claim Settlement Ratio Is Calculated?

Claim Settlement Ratio (CSR) is calculated by dividing the total number of claims settled by an insurance company during a specific period by the total number of claims received by the company during the same period. 

The formula is as follows:

CSR = (Total number of claims settled / Total number of claims received) x 100

For example, if an insurance company received 100 claims and settled 90 of them, the CSR would be calculated as:

CSR = (90/100) x 100

CSR = 90%

A high claim settlement ratio indicates that the insurance company is efficient in processing and settling claims, which can be a positive indicator for potential policyholders.

 

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Why Check The Claim Settlement Ratio Before Buying The Policy?

Checking the claim settlement ratio (CSR) before buying an insurance policy is crucial for many reasons like indicators of reliability, financial security, claims process efficiency, etc.

  • Indicator of Reliability: The claim settlement ratio shows how many claims an insurance company has paid out compared to all the claims it received. A high ratio means the company is good at paying claims, which gives customers peace of mind that their claims will be approved.

  • Financial Security: People buy insurance to stay safe if something unexpected happens. A high CSR means the insurance company will probably help out with money when needed, keeping the policyholder's finances secure.

  • Customer Trust and Satisfaction: A good customer service representative shows that a company cares about making customers happy. It means the company values its customers and is dedicated to delivering what it promises. This builds trust and helps create long-lasting relationships with customers.

  • Claims Process Efficiency: A high CSR means the insurance company processes claims quickly and easily. This helps policyholders get their benefits faster and with less hassle.

  • Financial Stability: Consistently high customer service ratings can show that a company is financially secure. A financially secure company can handle many claims at once, especially during big events like natural disasters.

  • Risk Reduction: Knowing a company's CSR helps in understanding the risks involved. If a policyholder picks a company with a good CSR, they can reduce the chances of having their claim denied or delayed, making sure their policy investment will be useful when they need it.

 

Read More:

Why Life Insurance Is Required? Types & Choose The Best Policy

Can You Have More Than One Life Insurance Policy?

Can Life Insurance Be Transferred To Another Company? Transfer Process

Can Life Insurance Policy Be Used As Collateral?

Why Life Insurance Is Not A Contract Of Indemnity?

 

Conclusion

In conclusion, Bajaj Allianz Life Insurance is a reliable and customer-oriented insurance company that offers many products to meet various needs. With a high claim settlement ratio of 98.02%, they have a strong track record of quickly and efficiently settling claims, providing financial security to their policyholders. 

By using technology and having a wide distribution network, Bajaj Allianz has positioned itself as a major player in the Indian life insurance market. Policyholders need to consider the claim settlement ratio of an insurance company before making a decision, as is an indicator of reliability, financial security, and claims process efficiency. Overall, Bajaj Allianz is a trustworthy option for individuals looking for insurance coverage in India.

FAQs

Yes, Bajaj Allianz has many hospitals that policyholders can go to get the treatment. The network of hospitals is 6500+.

To know if a company is reliable, look at how many claims they settle, reject, and still have pending.

Max Life Insurance settled the most number of policies in 2022-23 with a claim settlement ratio of 99.51%. HDFC Life Insurance settled the second highest number of policies with a ratio of 99.39%.

Once everything that is needed has been taken care of, the insurance company will pay out the claim within a set amount of days. At Bajaj Allianz General Insurance Company, you can rely on it to start the process of settling your health claim and send you the money within 7-10 working days.

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