Life insurance is a contract between the life insurance company and the life insured, where the insurer promises to pay a sum of money or how much the life insured took a coverage himself to the designated beneficiary, upon the death of insured person. In this statement the important thing is the assurance of settled the coverage amount to the specified person due to the risk of life insured. For that, the selection of life insurance company is important in terms of settling the claim. Claim settlement ratio of life insurance company provided by the IRDAI is helps us to find better life insurance company to insure. In this article the review of IndiaFirst Life Insurance claim settlement ratio is given in the financial year of 2018-19 also provide the claim settlement history of that life insurance company.
INDIAFIRST LIFE INSURANCE
India First Life Insurance Company is the youngest life insurance company in India which was established in the year of 2009, headquartered in Mumbai. It is a joint venture between the India’s two most leading public sector banks, Bank of Baroda and Andhra Bank and the foreign partner of Legal & General, UK’s financial and Investment Company.
The collaboration of the two public sector banks and foreign partner held the stakes in the following proposition as Bank of Baroda – 44%, Andhra Bank – 30% (Amalgamated with Union Bank of India) and Warburg Pincus – 26%.
The company’s key differentiators are their simple, easy-to-understand products that are fairly-priced and efficient serviced. Even though the company was started in 2009 and had been the 22nd
insurance company in the life insurance industry and sold their first policy, then to as of 31st
March 2020, where India First Life ranks 12th
in the private sector in individual NB APE for FY 2020. They ended FY20 on a strong footing with INR 3,360 crore worth of total premium collected and AUM of INR 14,723 crore.
Claim Settlement Ratio of IndiaFirst Life Insurance
The process of pays out a risk coverage amount to the insured on the occurrence of the event specified in the contract, in a return of premium paid for the insured is called claim settlement of insurance company.
Claim settlement ratio is defined as number of claims settled to the insured against the number of claims filed to the insurer.
= (Total no of claim paid during a financial year) / (Total no of claims received in that financial year)
While choosing the life insurance company to insure, it is an important factor to take into consider.
The Claim Settlement Ratio of IndiaFirst Life
Insurance in the financial year 2018-19
Claim Settlement Ratio of IndiaFirst Life
Claim details of IndiaFirst Life Insurance
IndiaFirst Life Claim Settlement 2018-19
|Claims pending at the starting of FY
|No of claims intimated in FY 2018-19
|Total No of Claims
|No of Paid Claims
|No of Claims Rejected
As per the details provided in the above table IndiaFirst Life Insurance Company has settled 92.82% of death claims against the total number of claims reported in the financial year of 2018-19.
The company has rejected 144 claims that leads its claim repudiation ratio as 0.76% in the year of 2018-19.
IndiaFirst Life has paid 75 crores of claim amount for 10672 claims to their customers in the financial year of 2018-19.
Claim Settlement Ratio of IndiaFirst Life for last 5 years
To know the history of claim settlement is important before insuring in to the life insurance company. For that IRDAI provide annual report of insurance companies every year, that contains the complete financial status of an insurance companies and also the indicators like claim settlement ratio, solvency ratio…etc.
The claim settlement ratio of IndiaFirst life for last 5 years is tabulated below.
The graphical representation of IndiaFirst Life’s claim settlement ratio for 5 years is given below.
Claim Settlement Ratio
Claim Settlement History of IndiaFirst Life
Review of IndiaFirst Life’s Claim Settlement Ratio
The basics of life insurance company is to provide financial security or claim if the insured person is no more. But insurance companies rejected and pending some of the claims due to some reason. None of the insurance companies aim is to reject their customer claims and also that’s depends on the details providing at the time of entering in to the insurance policy. People have a responsibility to provide correct details required at the time of taking the policy. At the time of claim, the pending can be avoided by providing required documents to settle the claim.
Since, the company has started in the year of 2009, the performance and their settlement towards claim is good. But, by increasing the percentage of claim settled and decreasing the claim rejection will make IndiaFirst Life Insurance Company to be more trustable and advisable to invest.