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Kotak Life Claim Settlement Ratio

Kotak Life Claim Settlement Ratio
  • 12th Sep 2022 |
  • 43,734

Founded in 2001, Kotak Mahindra Life Insurance Company Ltd. is one of India’s fastest-growing insurance companies. With its head office in Mumbai, the company is a 100% owned Kotak Mahindra Bank Ltd subsidiary. Today, with nearly 32.8 million policyholders across the country, it encompasses various insurance needs across the board. These include, child plans, and Over the years, Kotak Life has established a very high claim settlement ratio, making it one of the most trusted entities in the insurance sector.

We live in a world of digital transformation, and the ease of availability of information over the Internet has made today’s policy buyers well-informed and more aware than ever before. With customers becoming more vigilant, it becomes critical for insurers to stand by what they claim to offer to their customers. The claim settlement ratio is one aspect that helps policy buyers determine whether an insurance company is credible, reliable and popular.

Let’s understand what this number signifies and why it is essential to know about it.

What is Claim Settlement Ratio?

A Claim Settlement Ratio (CSR) is the ratio of the number of claims settled by an insurance provider to the total number of requests received in a given accounting period. This ratio is determined by The Insurance Regulatory and Development Authority of India (IRDAI); the governing body also releases the claim settlement ratios of all insurance companies in India. As such, it is always expressed as a percentage and is straightforward to measure.

To cite an example, let’s say a life insurance company has received 100 claims in a given financial year. Out of which it has successfully settled 97 claims. Thereby the company’s claim settlement ratio is said to be 97% that given year. But unfortunately, it also means that the remaining 3% of claims have been rejected. Most people overlook this, but when choosing an insurance policy, you must assess the claim settlement ratio of the insurance company before buying the product.

Another essential ratio that policy buyers must be aware of is the solvency ratio. When life insurance is bought, the insurer promises to pay a predetermined sum to your nominee in case an unfavorable event Now assess the problems of natural disasters like earthquakes, floods, tsunamis, etc. Such an occurrence may result in more claims than expected for the company. In this case, the solvency ratio of Kotak Life Insurance, or any other insurance provider, determines its ability to resolve the disputes. In essence, Kotak Life Insurance solvency ratio refers to its ability to pay its debts.

Therefore, the financial standing can be determined by the solvency ratio of Kotak Life Insurance. A high percentage indicates that the business is financially stable and has sufficient capital to cover all legitimate claims.

What are the Types of Claims in Life Insurance Policy?

There are two types of life insurance policy claims:

  • Maturity claims

The policyholder should send the maturity claim or discharge form and the original policy bond before maturing in a maturity benefit. The policyholder must directly contact the insurance company to file the claim. After this, one can meet the concerned insurance advisor at the branch office or contact the helpline. A policyholder must submit the original policy bond that the insurance company provided.

  • Death claims

Filing a claim for the policy, the beneficiary must include all the necessary information like policy number, name of insured, cause of death, place, and date of demise. You can get the claim intimation/notification form from an insurance company’s agent or advisor from the insurance company branch. You can also visit the insurer’s online website to download the form.

Why is Claim Settlement Ratio Important to Know?

Life insurance is a crucial tool as you plan your future dependency according to it. If this safety net were to fail, all your measured planning would go in vain, and your family would have to suffer the consequences. Hence, choosing a dependable policy becomes of utmost importance. This is where the role of the claim settlement ratio comes into play. CSR is a reliable metric as it depicts the reliability of an insurer. This ratio gives you a percentage of claims that the insurance company has settled. If a company doesn’t resolve your claim, then the point of getting life insurance is defeated. Therefore, CSR is a good measure for knowing which insurer will safeguard your interests and come through during your time of need.

An insurance company’s claim settlement ratio is an essential factor when selecting an insurance company for buying life insurance. It reveals the percentage of insurance claims an insurer has settled or paid during a financial year.

Kotak Life Claim Settlement Ratio Over the Years

Regarding settling claims, consistency has been the driving factor at Kotak Life. As a result, these past claim settlement ratio trends paint an accurate picture.

Kotak Life Claim Settlement Ratio for the Financial Year 2020-21

The Claim Settlement Ratio of Kotak Life is 98.50% for the financial Year 2020-21, as per IRDAI annual report.

Life Insurer

Claims Paid

(FY 2020-21)

Amount Paid

(in INR Cr)

CSR%

(FY 2020-21)

Kotak Life

4,336

299.92

98.50% 

The latest IRDAI Annual Report indicates:

  • The claim settlement ratio of Kotak Life for the financial year 2020-21 is a whopping 98.50%.
  • With over INR 299.92 crores of the amount paid as the claim amount against over 4,336 claims received in total.

Today, finding an insurance provider who will make good on their promises has become increasingly important. This is why the Kotak Life solvency ratio and claim settlement ratio are so important. A company with a low ratio hardly ever follows through on their promise of being there for you when things get complicated. So when you select a trustworthy name like Kotak Life and given its high CSR rate, you can rest assured that Kotak Life will be there for you when you need them.

FAQs

1. Who can be the beneficiary?

A beneficiary is an individual who will get the death benefit in the event of your untimely demise. However, there are no set rules regarding who you can select as your beneficiary in an insurance policy. Your beneficiary can be any individual from your friends, family or someone close to you.

2. What are the key factors to understanding the claim settlement ratio in life insurance?

  • To ensure you make the right decision, you should look at the insurance company’s claim settlement ratio for the last five years.
  • You can trust the insurer if there is no inconsistency and a high claim settlement ratio.
  • The IRDAI publishes the claim settlement ratio of all the public and private insurance companies in their annual report, available online. So consider this aspect before buying an insurance policy.

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

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