Th financial instrument or an invisible product used to provide a coverage of human life against any risk is called life insurance. It is a contract offered by an insurance company and assured to provide financial security of the insured people by exchanging of paid premium. As per the contract to providing claims in case of any risk of life insured is important for life insurance company. For that, the company should be financially stable and perform well in their business. So, selecting an insurance company to insure is also an important thing for the life insured. Claim settlement ratio is one of the important factors helps to find the good life insurance company. In this article the review of IDBI Federal Life Insurance Claim Settlement Ratio is given in the financial year of 2018-19 and also provide the company’s claim history.

 IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance Company Limited (henceforth known as IDBI Federal/the company) is one of the India’s major life insurance companies, founded in 2007.

The company’s product portfolio encompasses a diverse range of wealth management, protection and retirement solutions for individual and corporate customers. The company has been formed by a three-way joint venture between IDBI Bank – India’s premier development and commercial bank, Federal Bank – India’s major private sector bank with a dominant presence in Kerala and Ageas – an international insurance group with a heritage spanning almost 200 years.

The company’s target is not to achieve 100%. But the target is to go well beyond that. For that the company only pushing the boundaries constantly and by doing that they were never done it before and the company can truly say they always keep moving, keep growing, keep innovating. This burning desire to race ahead of the competition faster and faster is what motivated their highly motivated team.

Claim Settlement Ratio of IDBI Federal 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 during a financial year) / (Total no of claims received in a particular 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 IDBI Federal Life Insurance Company in the financial year 2018-19 is 95.79%.

IDBI Federal Life Claim Settlement Ratio IDBI Federal Life Claim Settlement Ratio

Claim Details of IDBI Federal Life Insurance

The claim details of IDBI Federal Life Insurance Company are tabulated below.



IDBI Federal Life Claim Settlement 2018-19
Claims pending at the starting of FY 6
No of claims intimated in FY 2018-19 1300
Total No of Claims 1306
No of Paid Claims 1251/53 cr
No of Claims Rejected 47

Form the above data IDBI Federal Life Insurance Company settled 95.79% of death claims against the total number of claims received by the company in the financial year 2018-19.

The company rejected 47 claims and the repudiation ratio is 3.60% in the year of 2018-19.

IDBI Federal Life Insurance has paid 53 crores of the death claim amount settled to their customers for 1251 claims in the year of 2018-19.

Claim Settlement Ratio of IDBI Federal 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 IDBI Federal Life for last 5 years are given below.



Financial Year
Claim Settlement Ratio
2014-15 75.80%
2015-16 84.79%
2016-17 90.33%
2017-18 91.99%
2018-19 95.79%

The graphical representation of IDBI Federal life for last 5 years is given below.

Graphical Representation of IDBI Federal Claim Settlement History Graphical Representation of IDBI Federal Claim Settlement History

In the above details, IDBI Federal Life Insurance company’s claim settlement ratio has increased slightly year on year. Since, the company started in the year of 2007, the growth of the company and its claim settlement ratio has increased and maintained in a growth state.

Review of IDBI Federal Life Insurance Company’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.

By using the above details, the claim settlement ratio of IDBI Federal Life insurance has increased year on year but in slower growth rate. So, here we conclude that the company is good but little risky to insure. If the company try to reduce the intimated claim and increase the claim settlement then it will undoubtedly a good insurance company to insure.

Source: IRDAI                                                                                                                                                 You can also read about IDBI Federal Life Insurance Company by using the link here IDBI FEDERAL LIFE INSURANCE

 

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