Li 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 Reliance Life Insurance claim settlement ratio in the financial year of 2018-19 and also provide the comparison of claim history of that company.

RELIANCE NIPPON LIFE INSURANCE

Reliance Nippon Life Insurance Company is amongst the leading private sector life insurance companies in India in terms of individual weighted received premium and new business premium. It is a joint venture between Reliance Capital, a leading private sector financial service provider and Nippon Life Assurance, a leading life insurance company in Japan.

OPERATIONS OF RELIANCE NIPPON LIFE

The company is one of the largest non-banking support private insurers with over 10 million policy holders, a string distribution network of 717 branches and 63,016 advisors as on March 2020. The company holds claim settlement ratio of 98.1% as on March 31,2020.

Reliance Nippon Life Insurance company is a part of Reliance Capital, a private sector financial services and non-banking company.

The insurance company is a joint venture between Reliance Capital and Nippon Life, the leading life insurance company on Japan. Reliance capital holds 51% of stakes and Nippon Life holds remaining 49% of stakes.

VISION OF RELIANCE NIPPON LIFE

Reliance Nippon Life Insurance is rated amongst Top 3 Most Trusted Life Insurance Service Brands by Brand Equity’s Most Trusted Brands Survey 2018, the company’s vision is “To be a proud of, trust in and grow with; providing financial independence to every life we touch”.

With this in mind, Reliance Nippon Life caters to five distinct segments, namely Protection, Child, Retirement, Saving & Investment and Health; for individuals as well as Groups/Corporate entities.

Claim Settlement Ratio of Reliance 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 / No of claims received

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 Reliance Life Insurance in the financial year 2018-19 is 97.71%.

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Claim details of Reliance Life Insurance



Reliance Life Claim Settlement 2018-19
Claims pending at the starting of FY 4
No of claims intimated in FY 2018-19 8367
Total No of Claims 8371
No of Paid Claims 8179
No of Claims Rejected 188

As per the details provided in the above table Reliance Life Insurance Company has settled 99.22% of death claims against the total number of claims reported in the financial year of 2018-19.

The company has rejected 188 claims that leads its claim repudiation ratio as 2.25% in the year of 2018-19.

Reliance Life has paid 154 crores of claim amount for 8179 claims to their customers in the financial year of 2018-19.

 Claim Settlement Ratio of Reliance 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 Reliance Life for last 5 years is tabulated below.

Financial Year

Claim Settlement Ratio

2014-15 83.84%
2015-16 93.82%
2016-17 94.53%
2017-18 95.17%
2018-19 97.71%

The graphical representation of Reliance Life’s claim settlement ratio for 5 years is given below.

Claim History of Reliance Life Claim History of Reliance Life

In the above details indicates Reliance Life Insurance has increases the claim settlement ratio year on year. The company having huge client base and one of the leading life insurance company in India. But, the number of claims received by the company is low and rejection ratio are also high.

Review of Reliance 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 as per the data above, Reliance Life Insurance claim settlement ratio increasing linearly in every financial year which is good. The stability in their claim settled percentage is also good. Hence, the company is good and trustable company to insure but the company has to increased their intimated claims settled and also decrease the rejection percentage to be a better company.



Source : IRDAI


RELIANCE NIPPON LIFE INSURANCE

 

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