Life insurance is an important financial instrument in a human life, because due to the loss of one’s life the money will help their family in various ways. So, it is very important to choose life insurance company to insure them. Claim settlement ratio is one of the important factors that will help you to find the right insurance company. In this article, we shown the review of Aviva Life Insurance claim settlement ratio in the financial year of 2018-19 and also provide comparison of last 5 years claim settlement ratio.

AVIVA LIFE INSURANCE

Aviva Life Insurance is a joint venture between Dabur Invest Corp., One of India’s Most Respected Business Houses and Aviva Plc., a UK based Insurance Company. Dabur holding 74% of shares and Aviva holding remaining 26% of shares in Aviva Life insurance company Limited.

Aviva Life was the pioneer of introducing the concept of Bancassurance in India, and has leveraged its global expertise in that area successfully in India.

Aviva’s purpose was that they help their customers to protect what’s important to them and help them look to the future with confidence.

Their aim is to craft simple and relevant products and propositions that help their customers to achieve their life goals.

The company was started in the year of 2001, after getting licensed from IRDAI. Aviva life has a clear idea, purposes and aims to serve people through their various product offerings. But the same time we have to review the company’s performance, history and financial stability to settle our claims before taking an insurance.

Claim Settlement Ratio of Aviva Life Insurance

Claim settlement ratio is defined as number of claims settled to the insured against the number of claims filed to the insurer.

CSR = (Total no of claim paid in a financial year) / (Total no of claims received in that financial year)

It is an important factor while choosing the life insurance company to insure. Higher the claim settlement ratio indicates the better insurer to insure.

The claim settlement ratio of Aviva Life Insurance Company in the financial year 2018-19 is 96.06%.

[caption id="attachment_2843" align="aligncenter" width="583"]Aviva Life Claim Settlement ratio Aviva Life Claim Settlement ratio[/caption]

Claim Details of Aviva Life

The claim details of Aviva Life Insurance Company are tabulated below.

Aviva Life Claim Settlement 2018-19

Total No of Claims 938
No of Claims Intimated 930
No of Paid Claims 901
No of Claims Rejected 20
No of Claims Pending 8

From the above details Aviva Life Insurance Company settled 96.06% of death claims against the total number of claims received in the financial year of 2018-19

The rejection ratio of Aviva Life is 3.1% and pending ratio is 0.84% in the year of 2018-19.

As per the details provided by IRDAI, Aviva Life has paid 89 crores of claim amount for that 91 claims.

Claim Settlement Ratio of Aviva Life for last 5 years

For life insurance companies, it is important to maintain higher and consistent claim settlement ratio as per the IRDAI guidelines.

Because, higher the claim settlement ratio indicates the better insurance company for the people to insure.

The details of Claim Settlement ratio of Aviva Life for last 5 years are given below:

Financial Year
Claim Settlement Ratio
2014-15 83.07%
2015-16 81.97%
2016-17 90.6%
2017-18 94.45%
2018-19 96.06%

Graphical representation of Claim settlement ratio of Aviva Life for last 5 years

[caption id="attachment_2844" align="aligncenter" width="655"]Aviva Life Claim History Graphical Representation of Aviva Life Claim History[/caption]

In the above details indicates Aviva Life has increasing the claim settlement ratio year on year. Aviva Life Insurance has growing year on year and also the company has covering 33 million people in India. Also, the company is working on positive measures to reduce the claim rejections and the number of claims by bringing in more quality lives.

As compared to last 10 financial years, from 2009 to 2016 the claim settlement ratio of Aviva life is not stable and below 90%. But, last 5 years the claim settlement ratio was gradually increased and is in stable.

Review of Aviva Life’s Claim Settlement Ratio

None of the life insurance company’s motive is to reject or holding the claim request received by them. It is people’s responsibility to honestly provide the details asked at the time of availing the insurance policy. Also, providing the required documents at the time of claim is important that it could avoid the claim pending.

Here, we concluded from the above data, the company has to focus more on to reduce the claims and also working on to increase the claim settlement ratio.

Source: IRDAI                                                                                                                                                       You can also read about Aviva Life Insurance Company by using the link here AVIVA LIFE INSURANCE             To know the review of Aviva Life before the financial year of 2009-14 by using this link  Aviva Life Claim Settlement Review 2013-14

Leave a Reply