Life Insurance is a financial instrument offered by the insurance companies that provide a life coverage of life insured against any risks. It plays a major role in human life to provide financial support behalf of the life insured. So, it is very important while choosing the life insurance company to insure. For that, an indicator which is used to know the good life insurance company called Claim Settlement Ratio. In this article you are going to see the review of Aditya Birla Sunlife Insurance claim settlement ratio in the financial year of 2018-19 and also provide the comparison of claim history of that company.
ADITYA BIRLA SUNLIFE INSURANCE
Aditya Birla Sun Life Insurance Company Limited (ABSLI), is a life insurance subsidiary of Aditya Birla Capital Ltd. ABSLI was incorporated on August 4th, 2000 and commenced operations on 17th January, 2001. ABSLI is a 51:49 joint venture between the Aditya Birla Group and Sun Life Financial Inc., a leading international financial services organization in Canada.
As on 30th June 2020, total AUM of ABSLI stood at Rs. 447,466 million. ABSLI recorded a gross premium income of Rs. 16,896 million in Q1 FY2020-21 and registering Y-O-Y growth of 34% in Gross Premium with individual business FYP at Rs. 3,275 million. ABSLI is currently ranked 7th in Individual business. ABSLI has a nation-wide distribution presence through 397 branches, 8 bancassurance partners, 6 distribution channels, over 82,000 direct selling agents, other corporate agents and brokers and through its website. The company has over 13,000 employees and more than 17 lac active customers.
Since from the starting year, the company has a strong foundation and good financial improvement in customer acquisition and also in new business. It offers various products to their customers in various parts of their life. But when comes to claim you must take a look about their consistency.
Claim Settlement Ratio of Aditya Birla Sunlife Insurance
Claim Settlement Ratio is defined as the number of claims settled by a life insurance company divided by the number of claims received in that financial year.
Claim Settlement Ratio = No of claim settled / No of claims received
Each and every financial year IRDAI provide an annual report for all life insurance companies. In that they clearly provide claim settlement ratio of life insurance companies. It is an important factor to review before selecting the insurance company to insure.
The Claim Settlement Ratio of Aditya Birla Sunlife Insurance in the financial year 2018-19 is 97.15%
[caption id="attachment_2884" align="aligncenter" width="527"] Aditya Birla Sunlife Claim Settlement Ratio[/caption]
Claim Details of Aditya Birla Sunlife Insurance
The claim details of Aditya Birla Sunlife is tabulated here.
Aditya Birla SunLife Claim Settlement 2018-19
|Total No of Claims||5260|
|No of Claims Intimated||5215|
|No of Paid Claims||5110|
|No of Claims Rejected||126|
|No of Claims Pending||45|
From the above details Aditya Birla Sunlife Insurance company settled 97.15% of death claims against the total number of claims received in the financial year 2018-19.
The claim rejection ratio is 2.4% for 45 claim rejections and the claim pending ratio is 0.85% in the year of 2018-19.
As per the details provided by IRDAI, Aditya Birla Sunlife paid 276 crores claim amount for 5110 claims.
Claim Settlement Ratio of Aditya Birla Sunlife for last 5 years
As per the IRDAI guidelines, it is important for insurance companies have to maintain consistent and higher claim settlement ratio. Because, higher the claim settlement ratio indicates the better insurance company to insure.
The last 5 years claim settlement ratio of Aditya Birla life is given below
Claim Settlement Ratio
Graphical representation of last 5 years claim settlement ratio of Aditya Birla Sunlife Insurance
[caption id="attachment_2885" align="aligncenter" width="668"] Aditya Birla Sunlife Claim Settlement History[/caption]
In the above details indicates Aditya Birla Sunlife Insurance has increases the claim settlement ratio year on year. The company having huge client base and one of the leading life insurance company in India. Instead of huge number of claims received by the company, they maintain a stable and increasing claim settlement ratio every year.
Review of Aditya Birla Sunlife’s Claim Settlement Ratio
Life Insurance companies have to settled their customers claim request as per the contract made by them at the time of providing the policy. None of the insurance company’s motive to reject the claims and it is a responsibility for the customers to provide their details honestly at the time entering in to the contract. Also, providing the required documents as per the TAT in important to avoid claim pending.
Source: IRDAI You can also read about Aditya Birla Sunlife Insurance Company by using the link here ADITYA BIRLA SUNLIFE INSURANCE To know the review of Aditya Birla Sunlife before the financial year of 2009-14 by using this link Aditya Birla Sunlife Claim Settlement Review 2013-14