Life Insurance is a contract made by the insurance companies about to assure risk coverage of the human life by exchanging of paid premium. It is very important for life insurance company to fulfill their given assurance at the time of entering in to the policy contract. Even also before insuring there is a need for the analysis of the financial stability, consistent performance and other factors of the life insurance company. Claim Settlement ratio is an important indicator to choose the better insurance company to insure. In this article the review of Edelweiss Tokio Life Insurance Company’s claim settlement ratio in the financial year of 2018-19 is given and also provide claim history of that company.
EDELWEISS TOKIO LIFE INSURANCE
Edelweiss Tokio Life Insurance Company Ltd is a new age Life Insurance Company in India, established in 2011. It is a joint venture between Edelweiss Financial services Limited, One of India’s Leading & diversified financial services company and Tokio Marine Holdings Inc, One of the oldest and largest life insurance company in Japan. The shares of the Edelweiss Tokio Life had divided in the ratio of 74:26 between Edelweiss and Tokio.
The company has identified six important need of the consumers and developed a range of products to help their customers for achieving their goals and the financial needs.
The products are very suitable for their customers through their various need in various stages of their life stages. The company has over 49,000 agents operating in 121 cities, across 93 locations.
The corporate agent of the company also used to provide their services to their consumers across all places in the country. The company was recognized as a ‘Rising Star Insurer’ in 2013 for its financial strength, business strategy and technology innovation.
Claim Settlement Ratio of Edelweiss Tokio Life Insurance
Claim Settlement Ratio is defined as the number of claims settled by an insurance company in a financial year divided by the total number of claims reported in the same financial year, including the number of claims pending at the beginning of that financial year.
CSR = (Total no of claim paid during a financial year) / (Total no of claims received in a financial year)
While choosing the life insurance company to insure, it is an important factor to take into consider.
The Claim Settlement Ratio of Edelweiss Tokio Life Insurance in the financial year 2018-19 is 95.82%
[caption id="attachment_2910" align="aligncenter" width="592"] Edelweiss Tokio Life Claim Settlement Ratio[/caption]
Claim Details of Edelweiss Tokio Life Insurance
Edelweiss Tokio Life Claim Settlement 2018-19
|Total No of Claims||239|
|No of Claims Intimated||239|
|No of Paid Claims||229|
|No of Claims Rejected||10|
|No of Claims Pending||0|
From the above data, Edelweiss Tokio life Insurance Company settled 95.82% of death claims against the total number of claims received by that company in the financial year of 2018-19.
The company rejects 10 claims in the year of 2018-19 financial year, resulting the claim repudiation ratio of 4.18%.
Edelweiss Tokio life totally paid 13 crores for 229 claims settled to their customers in the financial year of 2018-19.
Claim Settlement Ratio of Edelweiss Tokio Life for last 5 years
Insurance Regulatory and Development Authority of India regulates the insurance companies and as per their norms every insurance company should maintain stable, consistent and claim settlement ratio in order to protect the insurable interest of the policy holders.
The claim settlement ratio of Edelweiss Tokio Life for last 5 years is given below.
Claim Settlement Ratio
The graphical representation of last 5 years of Claim Settlement ratio of Aegon is provided below.
[caption id="attachment_2911" align="aligncenter" width="586"] Graphical Representation of Edelweiss Tokio Life Claim History[/caption]
As per the above graph, the claim settlement ratio of Edelweiss Tokio life insurance has increased linearly year on year on the growth state. Also, for the last 3 years the claim settlement is above 90% and that is in stable and consistent state.
Review of Edelweiss Tokio Claim Settlement Ratio
Insurance companies promised the assurance of the risk coverage of their customers at the time of providing the insurance policy. But some incidents the insurance company rejected their claims due to wrong information provided from the customer side. It is important for people to provide correct details and required documents at the time of claim to avoid the rejection and pending of claims.
As per the above data and the graphical representations, Edelweiss Tokio Life Insurance Company’s claim settlement ratio is good. Even though the claim settlement ratio is in stable and consistent state, the number of claims received by the company is very low as compared to other company. We have to wait for the upcoming year of claim settlement ratio of Edelweiss Tokio to decide its consistency and stability in claims.