Life Insurance is a financial instrument offered by the insurance companies that provide a life coverage of life insured against any risks. It plays a major role in human life to provide financial support behalf of the life insured. So, it is very important while choosing the life insurance company to insure. For that, an indicator which is used to know the good life insurance company called Claim Settlement Ratio. In this article you are going to see the review of DHFL Pramerica Life Insurance claim settlement ratio in the financial year of 2018-19 and also provide the comparison of claim history of that company.
PRAMERICA LIFE INSURANCE
Pramerica Life Insurance Company is a joint venture between DHFL Investments Limited (DIL), a wholly owned subsidiary of Dewan Housing Finance Corporation Limited (DHFL) and Prudential International Insurance Holdings Ltd. (PIIH), a financial services leader headquartered in the U.S. PLIL represents the coming together of two renowned financial services organization with an insurance joint venture agreement between the two partners was signed.
The company was earlier known as DHFL Pramerica Life Insurance Company Limited started its operations in India on September 2008 and has a pan India presence through multiple distribution channels which have been customized to address the specific insurance needs of diverse customer segments. The company is committed to providing protection and quality financial advice to its customers.
By having the headquartered in Gurugram, the company provide a wide range of life insurance solutions for individuals as well as groups. The company having 144 branches with 2356 employees and individual agents across the country to provide continuous services to their customers.
Claim Settlement Ratio of Pramerica Life Insurance
Claim Settlement Ratio is defined as the number of claims settled by a life insurance company divided by the number of claims received in that financial year.
CSR = No of claim settled in a financial year / No of claims received in that financial year
Each and every financial year IRDAI provide an annual report for all life insurance companies. In that they clearly provide claim settlement ratio of life insurance companies. It is an important factor to review before selecting the insurance company to insure.
The Claim Settlement Ratio of Pramerica Life Insurance in the financial year 2018-19 is 96.8%
[caption id="attachment_2922" align="aligncenter" width="518"] Pramerica Life Claim Settlement Ratio[/caption]
Claim Details of Pramerica Life Insurance
The claim details of Pramerica Life Insurance are tabulated here.
Pramerica Life Insurance Claim Settlement 2018-19
|Total No of Claims||656|
|No of Claims Intimated||649|
|No of Paid Claims||635|
|No of Claims Rejected||19|
|No of Claims Pending at the starting period||7|
From the above data DHFL Pramerica Life Insurance company settled 96.8% of claims against the total number of claims in the year of 2018-19.
Hence, the company rejected 19 claims that the repudiation ratio is 2.89% in the year of 2018-19.
Pramerica Life paid 26 crores of claim amount for 635 claims intimated to their customers in the financial year of 2018-19.
Claim Settlement Ratio of Pramerica Life for last 5 years
As per the IRDAI guidelines, it is important for insurance companies have to maintain consistent and higher claim settlement ratio. Because, higher the claim settlement ratio indicates the better insurance company to insure.
The last 5 years claim settlement ratio of Pramerica Life Insurance is given below.
Claim Settlement Ratio
The graphical representation of last 5 years claim settlement ratio of Pramerica Life Insurance
[caption id="attachment_2923" align="aligncenter" width="615"] Graphical Representation of Pramerica Life Claim History[/caption]
From the above graph the claim settlement ratio of Pramerica Life Insurance has increased year on year. Since the company started in the year of 2008, its client base and claim settlement ratio has increased linearly in the growth state.
Review of Pramerica Life’s Claim Settlement Ratio
Life Insurance companies have to settled their customers claim request as per the contract made by them at the time of providing the policy. None of the insurance company’s motive to reject the claims and it is a responsibility for the customers to provide their details honestly at the time entering in to the contract. Also, providing the required documents as per the TAT in important to avoid claim pending.
We concluded that as per the above data, the claim settlement ratio of Pramerica Life Insurance is good, but the number of claims intimated is very low as compared to other insurance companies. The stability and consistency of the company is depending on only when the number of claims intimated is increased and how the company handles that settlement.