Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Kotak e-Term Plan

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Claim settlement ratio of more than 85% makes the insurer trustworthy. But having CSR of more than 90-95% is a better option. Know the importance of checking term insurance claim settlement ratio.

  • Jun 18, 2019

The importance of a life insurance plan is immeasurable in a family that has only one earning member. In case the breadwinner loses his or her life due to an accident or illness, the whole family suffers emotional, as well as, financial stress. If you are always worrying about your family for the same reason then it is time for you to buy a life insurance policy. It will provide your loved ones the financial support they need in the time of emergency. Before you buy the insurance plan, do not forget to compare the term insurance claim settlement ratio of different insurers to understand which insurance company will be the best for you.

What is a Claim Settlement Ratio?

A claim settlement ratio of an insurance company is the number of claims settled against the number of insurance claims filed. When a life insurance policyholder passes away and an insurance claim is made, the insurance companies follow certain rules and conditions before settling the claim. Not every claim is approved as some of them might not meet certain policy requirements. The claim settlement ratio can be used as a measurement to determine if a certain policy is right for you or not.

Formula to Calculate Claim Settlement Ratio

Claim Settlement Ratio or CSR can be calculated by taking the total number of insurance claims settled by the insurer and divide it by the total number of insurance claims received by the insurer.

Let’s consider the claims settled by the company are 90 and the claims filed by policy holders are 100 in a year,then the CSR of that insurance company will be:

CSR = Total no. of insurance claims settled successfully / Total no. of insurance claims filed by the policyholders

= 90/100

= 90%

Why Is Claim Settlement Ratio so Important?

When buying life insurance, you need to check various aspects before deciding which insurance company is right for you. You have to find out about the various policies and covers offered by the insurance company. You need to know how their customers review them in terms of services and customer relationship management. However, many people ignore the need to check the claim settlement ratio, which is a huge mistake. Here are two reasons why IRDA claim settlement ratio is important:

1. Measure the insurer’s reliability

The life insurance policy is a big investment plan. You have to pay a good number of premiums over a long duration to avail of the benefits offered by the policy. So, if your claim is rejected for some reason in the future then that can seriously hurt your financial planning. The settlement ratio is a very reliable measurement indication that helps you know if a certain insurer is trustworthy or not. A favorable ratio indicates that the insurer is right for you.

2. Gives assurance about your dependent’s financial future

Checking the term plan claim settlement ratio is important to ensure the financial security of your family. The last thing any family can endure after suddenly losing a family member is the rejection of an insurance claim. It is your job as a policyholder to make sure that your family does not have to go through that trouble. With the help of the settlement ratio, you can make the right
decision when buying a policy.

What to Look for in Claim Settlement Ratio

1. A claim settlement ratio of more than 85% is a good sign, making the insurer trustworthy. But insurance companies having a high CSR of more than 90-95% is a better option.

2. You should refer to the persistence ratio of an insurer to know how persistent policyholders have been in renewing their policies. This shows the policyholder’s trust in the long-term insurance products and the services offered.

Buy Term Plan Online

Points to Remember

1. The claim settlement ratio not only contains term insurance but also other life insurance products. Hence, having a client base that purchases other types of insurance products, for returns rather than life cover, benefits the insurer.

2. Many insurance companies have to remove fraudulent cases which leads to a decrease in CSR. This cannot be blamed on the insurer as it is vital to eliminate such frauds.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Things to Keep in Mind While Buying Life Insurance Policy

How Does Life Insurance Work?

How Much Life Insurance Cover Do I Need?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Types of Life Insurance Or One Investment, Many Options

Why Renewal of Term Insurance Plan is Important

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Details Required To Be Filled In A Life Insurance Form

7 Superficial Reasons People Avoid Buying Insurance Online

Do Your Financial Planning with Life Insurance!

Why Buying a Term Insurance is Important for all Parents

A Step-by-Step Guide: How To Make An Investment Plan?

Does Life Insurance Policy Cover Covid Death?

Different Types of Insurance Policies in India

In India, should NRIs purchase life insurance?

5 Advantages of Life Insurance Going Digital

Difference Between Insurance and Assurance?

Term Plan with Return of Premium (TROP)

Biggest Life Insurance Myths

How To Choose The Right Life Insurance

Does Life Insurance Cover Terminal Illness?

What is an Endowment Plan?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Health Insurance VS Life Insurance

Take 100% Responsibility of Your Family with Term Life Insurance

Can An Individual Buy Multiple Term Insurance Plans?

Life Insurance and Millennials

Staying Insured While Investing

All About Life Insurance and How It Works?

What is the Difference Between Insurance and Reinsurance?

Sabse Pehle Life Insurance

Benefits of Term Insurance with Critical Illness Rider

Best Insurance Plans in India

जीवन बीमा पर ऋण

What Should One Expect During the Medical Evaluation for Life Insurance?

5 Smart Steps to keep in mind while buying term policies

What happens to joint life insurance after divorce?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Can a Term Plan be the Substitute for a Retirement Plan?

How to Buy a Term Life Insurance Online

Term Insurance Claim Process

Customer Awareness on Information Security

Does Family History Affects your Term Life Insurance Rates?

Term Life Insurance Vs Money Back Life Insurance

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Role of Life Insurance in Your Financial Portfolio

Is Life Insurance an Investment?

How do life insurance payouts work?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Difference Between ULIP and Endowment Plan?

Different Types Of Life Insurance In India

क्या जीवन बीमा एक निवेश है?

What Is Financial Planning?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

How to Choose the Right Life Insurance Policy for Your Age?

What Is Insurance Rider and It’s Benefits?

5 Ways to ensure faster settlement of claims

Life Insurance with Money Back vs Without Money Back

When are Millennials required to take out a life insurance policy?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

What is the Current Trend in Term Insurance?

All about Life Insurance Calculators

How to Customize Your Life Insurance Policy with Riders

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

NRI Premium Payment Options

Insurance Vs Investment - A Guide to Your Financial Goals

Why One Must Buy Term Insurance before 25 Years

What is Group Insurance?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Reasons Why Term Insurance Claims Get Rejected

Types of Life Insurance Policies in India

What is Insurance Coverage? Overview, Types, and Examples

Terms and Conditions of Term Insurance Plans

Nominee in insurance - A Complete Guide on nomination in insurance

Beware of Phishing & Fraud Insurance Calls

How to Revive the Lapsed Life Insurance Policy?

Kotak Life Claim Settlement Ratio

6 Different Types of Insurance Policies

भारत में जीवन बीमा पॉलिसियों के प्रकार

Role of IRDAI in the Insurance Sector

Important Features of a Term Insurance Plan

Term Insurance Vs Life insurance: Small Details, Big Differences

Why is Medical Test Important While Buying a Term Insurance?

What is Life Insurance?

How To Use Different Types Of Life Insurance For Retirement Planning?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What is a Single Premium Term Plan and its Tax Benefit?

All about Your Rights and Duties While Buying Life Insurance Policy

Loan Against Life Insurance Policy

How to Buy a Life Insurance Plan?

Choosing a Life Insurance Beneficiary

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Health Insurance VS Life Insurance

Who Is A Nominee In A Life Insurance Plan?

ULIPs: Suitable for all

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

What Is Social Impact Investing and How Does It Benefit Society?

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Why Online Term Insurance Plans Cheap?

Do Life Insurance Premiums Increase Every Year?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Everything You Must Know About ULIP Riders

What is Underinsurance & The Dangers of Being Underinsured

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

How Often You Must Review Your Life Insurance Policy?

Voluntary Life Insurance Policy Vs Group Life Insurance

First Job? Here’s Some Tips on How to Manage Finances

What is the Difference Between Limited and Regular Pay Insurance Plan?

Is It Advisable To Have Multiple Life Insurance Policies?

Life Insurance Beneficiary

5 Common Life Insurance FAQs and Answers

Why Your Family Should Know About Your Life Insurance Policy?

Why You Should Never Cancel Life Insurance Policy

Is it Worth Buying Disability Rider on Term Insurance?

How to Find the Best Term Insurance Plan in Seven Steps

Life Insurance Vs. Mutual Funds Investment

How to Calculate Human Life Value(HLV)?

Life Insurance for Overweight Applicants

Should You Buy Life Insurance After Getting Married?

Choosing Between Short-Term & Long-Term Insurance Plans

Why Life Insurance Is Always a Smart Decision

Choose the Nominee of a Term Life Insurance Plan Wisely

Various Term Insurance Premium Payment Options Available in India

Compare Different Life Insurance Products Offered By Kotak Life

How to Choose a Life Insurance Policy

How Much Life Insurance Do You Need?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

What Is Staggered Payment Option Under Term Insurance Policy?

FAQs on Life Insurance

What are robo-advisors in insurance?

Life Insurance and Retirement Planning

Top 5 Common Life Insurance Myths and Facts

Can NRI Buy Life Insurance in India?

What Is the Procedure to choose a nomination in life insurance policy?

Why do I Need Life Insurance?

Life Insurance for Millennials

5 Easy Steps to Buying A Policy

How to Choose Life Insurance for All Ages?

How Do Term Insurance Plans Differ for Smokers?

What is Human Life value and a Human Life Value Calculator?

Life Insurance vs Mutual Funds

What are the Benefits of Endowment Policy?

What Is a Whole Life Insurance Plan?

Is It Time to Review Life Insurance Policy of Yours?

All about IRDAI

Think About Life Insurance Sooner than Later

Digital Life Certificate for Pensioners Seeking Pension

जीवन बीमा क्या है?

What is Sum Assured in Endowment Policy?

All About Backdating in Life Insurance

Does Life Insurance Pay for Suicidal Death?

5 Reasons Why You Need Life Insurance in College

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Why Do Life Insurance Agents Avoid Selling Term Plans?

How to Make Death Claims on Life Insurance?

Life Insurance Policy Closure

Always keep your Nominee informed

Can You Transfer Life Insurance Policies to Another Company in India?

Difference Between Term Insurance and Endowment Plan

5 Things to Consider Before You Buy Life Insurance

Insurance Changes You Need to Make Post Marriage

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Guide for Buying Online Term Insurance Plans for Senior Citizens

Why do most Indians choose the wrong way to buy life insurance?

Important Terminologies of Life Insurance

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

When Should You Review Term Life Insurance of Yours?

Is Life Insurance For Millennials Really Needed?

A Term Insurance Guide for Disabled People

Guidelines for Linking Aadhar and PAN to Insurance Policies

Process of Filing A Claim For Life Insurance

What Is Investment Insurance?

Life Insurance Plans for Women

Adding A Child to Your Life Insurance Policy?

Important Life Insurance Terms You Must Know

Term Insurance Tips for NRIs in India

What is Minimum Life Insurance Policy?

Life Insurance for Overweight Applicants

Difference Between Money Back and Endowment Policy

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Key Things to Review in Your Life Insurance Policy Document

5 Reasons Why a Women Should Buy a Life Insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

10 Most Frequently Asked Questions - FAQs on Term Insurance

Term Life Insurance vs Accidental Death Insurance

What Happens If I Stop Paying My Life Insurance Premium?

6 Things You May Not Know about Life Insurance

Types of Insurance You Must Invest in for Secure Future

“Life” Insurance or “Death” Insurance?

Why Term Insurance for Women is Important?

How Many Insurances Should I Have?