A life insurance policy is one of the few investment options that provide financial security to the people along with maturity benefit, including tax benefits. Even though having these much of benefits, the primary objective of life insurance is to provide financial security or income replacement for their family in the event of life insured’s death. Human life is made up of the happening of unexpected and uncertainties. So, it is important to the people, who has a financial dependent would benefit from investing in life insurance. Here, you can clearly understand the importance of providing the claims of an insurance companies in the event of life insured risk. So, before investing in to life insurance, one should review the important factor that is claim settlement ratio. In this article the review of Kotak Life Insurance Claim Settlement Ratio in the financial year of 2018-19 is given and also provide the history of claim settlement ratio of the company.
KOTAK LIFE INSURANCE
One of the fastest growing companies in India and covering more than 20 Million lives nationwide is Kotak Mahindra Life Insurance.
Since 2001 the company caters to 15 million customers with 232 branches around 167 cities and town in India and also the strong banking partners in various places of the country.
They offer savings, wealth creation, protection and retirement type of plans to meet the customers need through their various stages of the life cycle.
VALUES OF KOTAK MAHINDRA LIFE
Their strongest value driven them that had held then together over the years.
- Professional Approach
Recognized as having the highest professional standards. Their employees and advisors will possess superior knowledge & skill, for the benefit of customer.
They create an environment that encourages all employees to innovative, experiment and try out new things without fear of failure.
- Continuous Improvement
They relentlessly strive for improvement. Each achievement becomes a milestone for the next level performance.
- Financial Prudence
Customers depend on them to be there in the future to meet promises. They will achieve by efficient cost management, uncompromised claim payments & superior investment management.
- Real Value to Customers
Satisfy their customers, by providing quality product, services, advice sustainable value, and ensure their customers receive excellent solutions to meet their needs.
- People Friendly
Employees will determine their future success. They will treat people with dignity. They will Invest in the development of their human resources and reward superior performance.
Their dealings are characterized by their highest levels of trust, honest and fairness.
Claim Settlement Ratio of Kotak 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 financial year)
While choosing the life insurance company to insure, it is an important factor to take into consider.
The Claim Settlement Ratio of Kotak Life Insurance in the financial year 2018-19 is 97.40%
[caption id="attachment_3362" align="aligncenter" width="596"] Claim Settlement Ratio of Kotak Life Insurance[/caption]
Claim details of Kotak Life Insurance
Kotak Life Claim Settlement 2018-19
|Claims pending at the starting of FY||18|
|No of claims intimated in FY 2018-19||3020|
|Total No of Claims||3038|
|No of Paid Claims||2959|
|No of Claims Rejected||67|
From the above data, Kotak Life Insurance paid 97.40% of claims against the total number of claims received in the financial year of 2018-19.
The company rejected 67 claims, that leads to the claim Repudiation ratio of 2.21% in the year of 2018-19.
Kotak Life has paid 137 crores of death claim for their customers against 2959 claims intimated in the financial year of 2018-19.
Claim Settlement Ratio of Kotak 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 Kotak Life for last 5 years is given below.
Claim Settlement Ratio
The graphical representation of last 5 years of Claim Settlement ratio of Kotak Life is provided below.
[caption id="attachment_3363" align="aligncenter" width="571"] Claim Settlement History of Kotak Life[/caption]
From the above graph clearly indicates that the claim settlement ratio of Kotak Life Insurance has increased year on year as per the company’s performance. But, in the financial year of 2015-16 the claim settlement ratio is very poor below 90% which is not good. Since from the financial year of 2016-17 the company’s claim settlement ratio has increased consistently high.
Review of Kotak 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.
By using the above data, consistency and stability in claim settlement ratio of Kotak Life is good but, for better claim settlement ratio the company have to reduce the number of claims intimated and also the number of claim settlement.
|Source : IRDAI|
|INDIAFIRST LIFE INSURANCE|